Marriage Allowance
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Thanks, polymaff. I thought I'd made it pretty clear on the phone. I gave them the dates that I went on maternity leave and confirmed that I didn't pay any tax during the last tax year. But even if I didn't state the year, I spoke to them during the 2017/2018 tax year and we agreed "last year", which could only be 2016/2017, surely?
I was hoping someone would be able to answer my question about whether my husband should have received a backdated amount for 2016/2017, but I guess I'll just wait for the letter to arrive and hopefully figure it all out then.
Thank you for your help.
If your hubby does self assessment then the refund will be issued once his return is submitted.
If not then the 2016/17 tax year will be assessed automatically between mid June and end of October when the automated process takes place.
If you'd rather not wait then get your hubby to call (8am to 8pm mon to fri, 8am to 4pm sat, 9am to 5pm sun) with his P60 or month 12 (March) payslip, and he will be able to verify his pay/tax details over the phone and the adviser will be able to do the assessment there and then if the details match what is held on the record.
What people need to be aware of is that from April, when the first assessment of the year is done for 2016/17, a cheque will not automatically be issued. In the first instance a tax calculation only will be issued telling the taxpayer how to claim the refund online by signing into/setting up a personal tax account. From there the taxpayer will be able to claim the repayment online and have it paid into their bank account via a bacs transfer. It usually takes about 10 days to get the calculation.
There is a way to speed up this process by registering for the personal tax account.
Once the adviser at HMRC has completed the assessment it usually takes upto 72 hours for the tax record to show the repayment as being available for issue. If you log into the personal tax account 3 or 4 days after making the call to HMRC to review the 2016/17 tax year then the tax account will show that the payment is available and you can go ahead and claim it by entering the bank details or requesting a cheque.
This speeds up the process by not having to wait for the calculation to be issued/received by post.
This is just one of many reasons why its beneficial to sign up for the personal tax account.
So that other people are aware of this I'm going to add it to a new topic.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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Yes he's cashing it & paying the bill0
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Polymaff
So that advice is incorrect? It's from the money saving expert website. It's sorted now for me anyway. Luckily we're not out of pocket0 -
Polymaff
So that advice is incorrect? It's from the money saving expert website. It's sorted now for me anyway. Luckily we're not out of pocket
Assuming that you are responding to post 930. MSE and HMRC - one is fool enough to believe the other - are incorrect.
Mind you, you could get all egg-headed and ponder "What Is Truth?" - the actual legislation or the HMRC process.
"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"
The above quote from the legisation applies to those who are UK-resident for tax purposes. Non-UK residents are the ones limited to the personal allowance0 -
As we are both retired but I still have casual employment at my old firm we decided to apply after seeing Martin Lewis on the This Morning TV program. My wife stopped being a tax payer in 2016-20017 after the rise in the Personal Allowance and also has the lower income, we therefore applied online for MA to assist with my tax. I received a £214 refund and tax code lowered for tax year 2017-2018. My wife then received a demand to pay back £204 for the tax year 2015-2016. My wife was still a tax payer in 2015-2016 because she was over her Personal Allowance by £240 and did pay £53 tax for that year. It was my understanding that an individual had to be a non tax payer to qualify for MA, so was it correct for HMRC to use the tax year 2015-2016 in there calculations. We did contact HMRC on this but were told my wife had to pay the money back, we therefore received in one hand but taken back in the other!!! Can you please advise on this.0
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When you apply for Marriage Allowance you have to specify which years you want it to apply from.
The only things that stop you being eligible are if you are getting Married Couples Allowance (one of you needs to be born prematurely 1935 or 1936 I think) or are a higher rate payer.
If they aren't relevant then you can apply but as you have found if you apply for the wrong year there can be no benefit overall (for that year) and in extreme circumstances you can owe much more as a couple (there is an example of this in Martin's guide to Marriage Allowance).
If your refund was for 2015:16 then you should be due a refund for 2016:17 as well which will be paid to you later this summer so overall you will be better off but when your wife applied it seems she has involved a year which she'd have maybe been better off ignoring and just starting from 2016:17.
You are under no obligation to but I hope you offer to pay your wife's tax bill for 2015:16, that will help keep the marriage a happy one
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As we are both retired but I still have casual employment at my old firm we decided to apply after seeing Martin Lewis on the This Morning TV program. My wife stopped being a tax payer in 2016-20017 after the rise in the Personal Allowance and also has the lower income, we therefore applied online for MA to assist with my tax. I received a £214 refund and tax code lowered for tax year 2017-2018. My wife then received a demand to pay back £204 for the tax year 2015-2016. My wife was still a tax payer in 2015-2016 because she was over her Personal Allowance by £240 and did pay £53 tax for that year. It was my understanding that an individual had to be a non tax payer to qualify for MA, so was it correct for HMRC to use the tax year 2015-2016 in there calculations. We did contact HMRC on this but were told my wife had to pay the money back, we therefore received in one hand but taken back in the other!!! Can you please advise on this.
Provided that, in your conversation with HMRC it was agreed to back-date to 2015/16, you, plural, seem to have been taxed correctly. In either case, you don't appear to have lost out financially.
See the last paragraph of post 922 to this thread.
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Hi, Thanks a lot Martin, applied online and received a cheque within 7 days for £426.00. As we are both retired living on state pensions and 2 smaller private pension it was very much appreciated. Thanks again.0
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Hi ... i applied for Marriage Tax Allowance around 6 weeks ago and immediately got a cheque for 2015/2016 tax year but have receieved nothing for 2016/2017 tax year .. our circumstances have stayed the same. Does the refund for 2016/2017 take longer to come? TIA0
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Yes, on gov.uk somewhere it says HMRC are reviewing last years tax between June and September so might be a month or two for 2016:17.
I guess 2015:16 was paid quickly because HMRC would have already got through reviewing everyone's tax for that year so no backlog.
I'm impressed that you applied and got a refund, for most people it is the spouse who didn't apply that gets the refund!0
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