Marriage Allowance

Dazed_and_confused wrote: »

It doesn't refuse anything when I put those figured in, simply says you won't be better off but as this is a very simple calculator and you can't specify what income sources you have I don't believe that is the correct answer for everyone - for a low earner on wages of £11000 there would be no benefit but I still believe it is possible to apply and be better off (as a couple) where savings income is involved.

Try putting £10500 and £20000

You are offered MAT with £10999 and £20000, but it's pointless as the saving is £1. I suppose they say no benefit at £11000 as there is no unused PA , but they don't qualify by saying you could benefit if some of the £11000 was in savings interest, which makes one think that what you believe/hope is not the case.


That is what needs clarity, isn't it ? ie is savings interest used to qualify / disqualify for MAT?

I sense a hobby-horse!

Not at all. It's just that £17,000 per annum seems a reasonable retirement income, particularly considering that it is greater than the minimum wage, that no NI is payable, that help is received with winter fuel and travel, that prescriptions are free etc.

It is certainly not a fortune but neither is it penury!

teddysmum wrote: »

Last year I applied for MAT as my husband is a basic tax payer and my income was below £10600.


However, as it was a case of £1060 or nothing, I transferred that amount, meaning that my income was actually slightly over my new PA.


This meant that, though my husband saved £212 in tax, I had to pay a small amount on the overspill (assume £10), so as a couple we still saved £202.


Is this what you are referring to ?

Could be, but I need to do that research - particularly with respect to the history of HMRC's MAT implementation - and that quote you highlighted in red

FWIW, my impression is that HMRC wrote pretty loose MAT acceptance conditions - based on preventing exploitation via relief at 40%. They then realised that they were letting many applications through that would give no nett benefit to the taxpayers involved and so have tightened the criteria to (try to) restrict it to those who will actually benefit.

The plot thickens:


I just rang HMRC and got through straight away.


1) The GOV site says you can get MRT if your income is up to £11000


2) Sam of MSE says , quoting from the online application form, that you don't have to include the first £5000 of savings interest (Obviously pre-new £1000 extra). Adding that if your non-savings income is under £11000 and savings interest under the £5000,you pay no tax so are a non-taxpayer.


3)When you ask for the MAT department on HMRC's phone line, they give an explanation that the donor must be a non-taxpayer.


4) The young man I spoke to said he didn't know whether the savings interest needed to be included. I gave an example of £9000 pension and £3000 of savings interest and he said that as this came to £12000, you would not get the MRT.


I then mentioned being eligible for £5000 (Plus £10000) of savings interest untaxed, so he said he would look in the manual.


He came back with the response that you don't include the savings interest as you are still a non-taxpayer, so my quoted situation would mean getting MRT.


I asked if he was sure and he said to check on the calculator, which will show what tax you pay. However, he mentioned it will say not to include, but it doesn't and it doesn't calculate tax, only the up to £220 saving on tax. (I wonder if the HMRC system calculators are different and have the advice about savings, because he said he'd keyed the £9000 and £3000 and found the situation'eligible'.).


I mentioned Stardust 1's situation and he said that was due to having more than £5000 in savings interest, which means that the extra £400 cannot just be added to the earned/pension income in isolation; the whole £5400 has to be added (I assume for MRT and not taxation purposes), the case being similar to people going over the £17000 limit.
Does anyone else have an idle 15 minutes and would like to ask a similar question, as I'm not convinced ?

teddysmum wrote: »

The plot thickens:

Thickens! More power to your elbow, Teddysmum - but this could run and run.

As Grandfather Polymaff (1885-1970) used to say - "What a way to run a railway!"