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Originally Posted by punky
Some good point Xaccers and SMHarman.
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SMH, what exactly did you mean by: "Mrs H's personal allowances cannot be shared with me"?
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Say you have 2 people earning 35000 a year or one earning 70000
For each of the two people
0-4615 = no tax
4616-6536 @ 10%
6537-35000 @ 22%
Total Tax each 6,453 in total 12,906
If only one earns the combined amount
0-4615 = no tax
4616-6536 @ 10%
6537-36437 @ 22%
36438-70000 @ 40%
Total 20195
So the same starting income, yet the household ends up with 7288 pa or 607 a month less as the non working partners allowances go unused.
Thats the point about sharing allowances. Many countries allow it, after all the same number of mouths need feeding and by only one of the household working it can mean employment opportunities for other households.
In this example the 70k sounds a lot, 35k seems more normal for someone in the south of england. For two 35k incomes to be replaced with one income, that income needs to be 82,000 thats the difference the tax policies make on income tax.
Though a non working spouse apparantly spends less on clothes, travel, food, work costs etc.