jacw001

Thanks for the clarification. After my SIPP contribution, I am a basic rate payer which do not pay the 40% tax. However, I am still due the HICBC charge in 2023/24 as my adjusted net income exceed the £50k threshold. On this basic, would I still receive the Marriage Allowance as my wife is houseperson looking after our baby?

I am in a similar case where I am just £1000 over the earning threshold to be a higher rate tax payer. To qualify to marriage allowance, I am planning to increase my SIPP pension contribution in this tax period to increase my basic rate limit so I remain as a basic rate payer. On this basis, a net contribution of £800 will be enough. Given I have received over £600 in interest, even though there is an allowance for £1000 tax free interest, would that £600 be added to my Total Income on which tax is due? If so, I will need to increase my SIPP by another £480 to be treated fairly as a basic rate tax payer. It would be great if HMRC could advise so I can plan accordingly