Just wondering, is there any way to reduce income tax when you get married?

I’m a higher rate payer and fiance will not be working, so just wondering if theres any ways to combine her allowance with mine or something. I’m self employed so will speak to accountant but just wondered if theres anything i should look at and get an idea of wht we can do.

just wondered if theres anything i should look

You could tell your missus to get a job

set up your own company, charge your current employer for services instead of being paid PAYE then “employ” your mrs in the company so that you can utilise her income tax thresholds and reduce yours. Just like Ken Livingstone 😉

If you’re self employed and paying the higher rate of tax, then you need to get a better accountant.

Probably 😉

There is no straightforward way.

Depending on the nature of your job you may be able to employ her to do some (e.g. admin, book-keeping) work for you. The work has to be done, it has to be at a commercial rate and the money has to actually be paid from you to her. You can do this up to her tax free allowance. However, be very careful and make sure you keep excellent records as it’s a good way of getting HMRC’s attention so it must be absolutely legit, if it’s not then HMRC will be on you like a ton of bricks! Is there any work you currently pay someone else to do for you that you could pay her to do instead?

Yes and no!

There is no income tax benefit simply from being married – you can’t simply combine tax allowances (although there is some political will to consider that sort of thing it is not likely to come into effect in the next 2-3 years at least). However as stoner suggests you could employ her to work in the company (but this must be legitimate work – not paying her to do nothing). Alternatively you could make her a shareholder in a limited company, and pay yourselves with dividends – you need to talk to your accountant to see if that is worth doing.

If your question is whether there is tex relief for being married, the answer is a straightforward no. Married couples allowance hasn’t been avaialable for a long time now, only people who are now in their 70’s still see the benefit of this old benefit.

any savings that generate income (bonds, interest and so on) – you can gift them to your spouse, and then they’d be clear to get that income gross (or reclaim it at the end of the tax year). this doesn’t apply to company dividends though (which already have the tax taken off and you can’t reclaim it).

So, building society account (R85 form to claim gross interest) and treasury gilts.