Author Archive: john.moffat

How can the Marriage Allowance save you money?

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There are many financial and legal benefits to being married or in a civil partnership, but one of the most overlooked reasons is the potential for tax relief.

This is because, thanks to the Marriage Allowance, where one partner earns below the tax threshold, they can transfer a portion of their personal allowance to the other partner, reducing the amount of tax they need to pay.

Am I eligible?

The Marriage Allowance relies on one spouse earning below their Personal Allowance of £12,570 per year. This can be through not working, having a low-paying or part-time job, or being retired.

The other partner must be paying the basic tax rate to receive the allowance, meaning their annual income must be between £12,571 and £50,270 per annum.

If this is the case, the lower-earning partner can transfer up to £1,260 of their personal allowance to their higher-earning partner.

How does it work?

By transferring part of your personal allowance to your partner, you increase their personal allowance up to £13,830. This reduces the portion of their income that they are liable to be taxed on, saving them up to £252 per year.

It is important to bear in mind that this transfer reduces the personal allowance of the lower-earning partner by the same amount, meaning that if they earn over £11,310, they are liable to pay tax.

Despite this, it is often still worth the transfer, as the lower-earning partner will still be paying a lower amount of tax, and it will contribute to an overall saving for both partners.

How do I get it?

You can apply for Marriage Allowance on the Government website if you fit all the criteria mentioned above.

If you or your partner were born before 6 April 1965, you may benefit more by applying for Married Couple’s Allowance instead.

It is also possible to backdate the claim to include any tax year from 5 April 2019, meaning that you and your partner can get further reductions to your tax bill.

If you are unsure whether the Marriage Allowance will benefit you and your partner, get in touch with our experts today for help and advice.

CPA Group

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CPA Group began as a service company predominantly selling the compressed air provision within the industry. Over time, through customer service, it expanded to provide a number of other services, leading to controlled air products. The company’s commitment to customer service and innovation has led to its growth and diversification. More about the company can be found on their website here.

CPA Group started working with Benson Wood 20 years ago. “I was looking for an accountant I could trust to give me advice and straight answers,” Alan Collin, CEO of CPA Group, recalls. “Having been close friends and neighbours with John Moffat, I knew I would get a high level of support from John and Benson Wood.”

“Benson Wood’s role in CPA Group’s operations is comprehensive. They verify our books, manage our payroll, and provide financial advice,” Alan shares. “They prepare our accounts, provide tax compliance, tax consultancy, and tax planning services, along with bespoke business advice. They also manage the payroll services for our 60-strong workforce.”

One of the most significant contributions of Benson Wood to date has been its tax project consultancy work. “They advised us on how to best mitigate company and personal tax liabilities given the significant changes in tax legislation for companies and individuals,” Alan adds.

When asked about the trust he puts in Benson Wood, Alan elaborates: “Benson Wood carried out extensive due diligence work for us when we were considering the acquisition of another company. They investigated the finances and accounts of the company and advised on the worth of the business. This gave us the comfort that we were getting full value for what we paid.”

Alan highly recommends Benson Wood to other businesses. “Their work is thoroughly professional, and their employees have integrity. I trust their business and employees because I know they share CPA Group’s values,” he says.

“The relationship between CPA Group and Benson Wood is set to evolve as we grow,” Alan anticipates. “We plan to use them more for outsourcing of financial requirements. Both businesses are on a similar path in terms of growth, and as CPA Group grows, Benson Wood is growing too, able to provide enhanced services to the benefit of both businesses going forward.”

The partnership between CPA Group and Benson Wood is a testament to the power of trust and the value of professional integrity. Benson Wood has been an integral part of our operations,” says Alan. “Our trust in them has been well placed and it has enabled us to continue our successful business procedures.”