alfo926

As a follow-up, when you say "taxable profit" do you just mean the amount above £7,500? In which case the amount included in my adjusted net income is the total income MINUS the £7,500 allowance?

Thank you for your reply. Just so I can be entirely clear on my reporting obligations: 1. If the total I receive is £7,500 or less I do not need to declare the income at all to HMRC, and it does not form part of my adjusted net income. 2. If the total I receive is greater than £7,500 I must declare the full amount to HMRC, and the full amount is included in my adjusted net income. Is my understanding correct?

If I rent a room in my home for £500/mo, thus falling within the £7,500 Rent-a-Room allowance, would I need to include that rental income in the calculation of my Adjusted Net Income, for purposes of reducing my Personal Allowance above £100,000? Also, what would be the situation if I was charging £800/mo and thus exceeding the Rent-a-Room allowance?

Thank you for this reply. The guidance on the Marriage Allowance states: "To benefit as a couple, you (as the lower earner) must normally have an income below your Personal Allowance - this is usually £12,570." The use of "must" in this statement implied some kind of restriction, but am I correct in interpreting from your response that I am allowed to opt to transfer part of my allowance even if my income is greater, and it's my responsibility to ensure it's beneficial for me?

Thank you for your reply. Are you able to recommend a course of action that would result in me being able to reclaim the unnecessary taxation quickly? Can I make the withdrawal on 6th April, for example, and then immediately request a refund of the overpaid tax? If so, what is the process for doing this, please?

In 2025/26 I expect to have employment of around £9,000 for the year. I will also need to take around £30,000 from my defined contribution pension as an UFPLS withdrawal in May 2025, in order to contribute towards a house purchase. Is there any way to avoid my pension provider withholding unnecessary tax from the withdrawal, as reclaiming that tax from HMRC might impact the availability of the funds for the purchase?

In the next tax year I will have earned income of around £9,000, and savings interest income of £5,000. This will make my total income for the year around £14,000. Would I still be able to claim Marriage Allowance to transfer £1,260 of my Personal Allowance to my wife, who will earn £18,000 employment income for the year? If I was to do this, I understand that my income would still fall entirely within the combined allowances of my remaining Personal Allowance and the Starting Rate for Savings?