Marriage Allowance

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  • therightpath
    therightpath Posts: 5 Forumite
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    Consumerist wrote: »
    You should check with HMRC that your wife qualified in 2015/16. It's possible that her total taxable income (including savings interest, etc.) exceeded the £10,600 limit.

    Set up an account on Hmrc to check my details not my wife's yet

    It says I paid too little for 2015/16 but I know it for the check I received in December
    My tax code on my payslip for this year says s1100L but on Hmrc it's S1210m to account for the marriage allowance which I m not receiving
    In April it should be 1250M to account for the marriage allowance but down to 1159M to repay the 212.
  • polymaff
    polymaff Posts: 3,904 Forumite
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    teddysmum wrote: »
    You can only count up to £5000 of savings interest, if the total with income goes over the personal allowance. ( eg the system wouldn't allow £ 6000 of interest and £6000 or earnings )

    Not so ...

    The legislation states that the condition is that:

    "the individual is not, for the tax year, liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings,"
  • evosy1978
    evosy1978 Posts: 636 Forumite
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    Hi

    We are due to get married next month.

    My partner is employed and earns £7500 p/a and Im self employed with profit of £22000

    would we benefit from applying for the MA?

    I've been reading the posts and I'm confused as to if its a good idea or not?

    Thanks
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    If your partners total taxable income is just the £7500 you have mentioned then after you are married you should benefit if he were to apply for marriage allowance.

    As you are self employed it would take quite some time for you to see the benefit - when you submit your 2017:18 self assessment return in January 2019 you would get £230 knocked off your tax bill.

    This assumes your marriage is on 6 April or later and you are making enough profit to pay that much tax in 2017:18
  • teddysmum
    teddysmum Posts: 9,471 Forumite
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    edited 19 March 2017 at 10:32PM
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    polymaff wrote: »
    Not so ...

    The legislation states that the condition is that:

    "the individual is not, for the tax year, liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings,"
    That's what I was told by two HMRC staff. I'd called about another matter but the lady mentioned above was posting about her problem, at the time, so I asked the question.

    However, looking back to posts around #600 ,Stardust, the lady who had the problem, had an update from HMRC, saying that they had fixed the glitch which meant that, wrongly, the savings interest over £5000 could not be separated and made tax free as part of her unused PA.


    For some reason, I didn't return to the thread until ages after, so missed her update.
  • polymaff
    polymaff Posts: 3,904 Forumite
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    HMRC - "power without responsibility — the prerogative of the harlot throughout the ages." Stanley Baldwin, 1931
  • evosy1978
    evosy1978 Posts: 636 Forumite
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    Dazed_and_confused wrote: »
    If your partners total taxable income is just the £7500 you have mentioned then after you are married you should benefit if he were to apply for marriage allowance.

    As you are self employed it would take quite some time for you to see the benefit - when you submit your 2017:18 self assessment return in January 2019 you would get £230 knocked off your tax bill.

    This assumes your marriage is on 6 April or later and you are making enough profit to pay that much tax in 2017:18

    How much can we earn before we're not eligible for the rebate. She earns about 7/8 thousand every year. My profit is about 22/25 every year....
  • polymaff
    polymaff Posts: 3,904 Forumite
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    The legislation states that the condition is that:

    For a UK-resident donor:

    "assuming the individual's personal allowance was reduced as set out in section 55B(6), the individual would not for that year be liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings"

    For a UK-resident recipient:

    "the individual is not, for the tax year, liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings,"

    There are other issues, but the above is a general guide, extracted directly from the legislation.
  • badmemory
    badmemory Posts: 7,799 Forumite
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    polymaff wrote: »
    HMRC - "power without responsibility — the prerogative of the harlot throughout the ages." Stanley Baldwin, 1931

    The thanks button is just not enough - surely eventually SOMEONE will hold them responsible for - well if nothing else at least some of the mis-information.
  • Elainer63
    Elainer63 Posts: 5 Forumite
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    Hi I filled form out online on 22-2-17 received an email saying my husband would receive new tax code and we would receive a cheque back for 2015/16,we received letters about new tax code 5 days later but no cheque but he received his March monthly pay but paid around £220 less tax,does anyone know if this is for this year or back pay not received a cheque back so don't know
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