How tax relief for second earners works
If you're married or in a civil partnership and you're both in receipt of earned income, this increase in the exemption threshold is given against the second earner's income when the tax is calculated at the marginal rate.
The tax threshold is increased by whichever is the lower of:
- £7,350 (for 2023)
- an amount equal to the lower earner's earned income
Earned income includes:
- employment income
- self-employment income
- casual earnings
- pension income in persons own right
- home carer's allowance paid by social security
It doesn't include:
- income from any unearned sources (e.g. bank accounts and investments)
- income from shareholder taxation
Independent Taxation
Second earners tax relief is not available to independently taxed spouse or civil partners. Each person will receive an individual allowance instead.
Independent Taxation
Married / civil partnership allowances
| Independent tax personal allowances
|
|---|
Tax allowance
| £29,750
| Your tax allowance
| £18,550
|
Second earners allowance
| £7,350
| Spouse or partner's tax allowance
| £18,550
|
Second earners tax relief example
Spouse A salary
| £30,000
| Income
| £65,000
|
Spouse B salary
| £35,000
| Less: exemption threshold
| £29,750
|
| | | Less: second earner's relief (Spouse A's income)
| £7,350
|
| |
| Total deductions
| £37,100
|
Taxable income
| £65,000
| Taxable income
| £27,900
|
Tax at 20%
| £13,000
| Tax calculation at 26%
| £7,254
|
gov.je