Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 2nd Jun 15, 4:39 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Marriage Allowance
    • #1
    • 2nd Jun 15, 4:39 PM
    Marriage Allowance 2nd Jun 15 at 4:39 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks ,
Page 50
    • rajeshwarsrm
    • By rajeshwarsrm 9th Sep 17, 11:02 AM
    • 2 Posts
    • 0 Thanks
    rajeshwarsrm
    Hi guys, I am not eligible for the allowance this year but eligible in 2015/16 year according to that year's banding due to having lower wage. Can I back date and apply just for that year or is it possible to backdate only if eligible in current year? Thanks.
    • Dazed and confused
    • By Dazed and confused 9th Sep 17, 11:09 AM
    • 1,868 Posts
    • 831 Thanks
    Dazed and confused
    It depends, are you the spouse transferring the allowance or the one who will get the tax deduction?
    • Consumerist
    • By Consumerist 9th Sep 17, 11:26 AM
    • 4,668 Posts
    • 2,320 Thanks
    Consumerist
    Hi guys, I am not eligible for the allowance this year but eligible in 2015/16 year according to that year's banding due to having lower wage. Can I back date and apply just for that year or is it possible to backdate only if eligible in current year? Thanks.
    Originally posted by rajeshwarsrm
    You can claim for any tax year in which you qualified. As I understand it, you can backdate a claim for up to four years.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • rajeshwarsrm
    • By rajeshwarsrm 10th Sep 17, 11:33 AM
    • 2 Posts
    • 0 Thanks
    rajeshwarsrm
    It depends, are you the spouse transferring the allowance or the one who will get the tax deduction?
    Originally posted by Dazed and confused
    I will be the one receiving the benefit. I will be asking my spouse to contact HMRC to initiate it.
    • Dazed and confused
    • By Dazed and confused 10th Sep 17, 11:59 AM
    • 1,868 Posts
    • 831 Thanks
    Dazed and confused
    She should be able to apply for 2015:16 as a one off year.
    • Kathykat
    • By Kathykat 23rd Sep 17, 8:51 AM
    • 1 Posts
    • 0 Thanks
    Kathykat
    Personally if I had known the amount of hours I would have spent on the married persons tax break I would never have applied and my advice is that unless you feel really really confident navigating HMRC, stay away from this one.

    When my kids were born I took a massive pay cut to care for them. I work at their school and only earn 10,522 a year. My husband is a public sector worker on 32,500 so this tax break seemed made for us. However, to date we have made a profit of £20 on this and spent more than 16 hours trying to navigate Hmrc. Stay away from this tax break!
    Some months after I applied I recieved a letter saying that I owed HMRC £80. I rang Hmrc, (every call takes on average 35 minutes, I have always been time poor) the call handler explained that I could either pay or have it taken from my wages through my PAYE. I would have preferred PAYE but she advised me to pay on line. I had a payment card in my hand but nothing so simple for HMRC. I had to pay on line.
    So you guys who get paid a lot and have to deal with HMRC probably know all this, but I had screaming toddlers and meals to cook and bed time bedlam and it was really difficult. In order to pay on line I had to register through the government gateway. In order to register through the government gateway I had to have a text sent to me. It's a lot to concentrate on when you are trying to do lots of other stuff and seemed overly complicated. I just wanted to pay £80. It was the beginning of the month and we had the money so I wanted to do it now. Surely I must have this wrong I thought? There must be a simpler way to pay. So I got back on the phone to hmrc.
    Again this call took 35 minutes but during the call the hold message kept telling me to check online as it was 'simple and easy' so whilst waiting and cooking (a quite yummy shepherds pie,) and putting my daughter back on the naughty step, I read an on line page that said that if you owed under £3000 then this could be collected from your PAYE.
    THANK GOODNESS. That was much more sensible.
    Except I didn't read it properly because it turned out that it said if you were a low earner they could not take it from your tax.
    I got two reminder letters to pay and in fairness both times I tried to ring HMRC but the waiting on the phone was something I just didn't have the time for, and anyway the message would always tell me to look on line.
    You end up getting stuck in a loop, paying on line is complicated and you have to call when it goes wrong. When the reminder letters turned up it wasn't always a good time of the month for us.
    So stupid me ended up with a £100 fine plus the original £80 and now they told me I had to self assess. This time I needed to wait on the phone. The call took 28 minutes. It turned out that I earn to little for them to take it from my PAYE(but not too little to fine me £100). Self assessment is hugely complex.
    You have to first join the government gateway which is complicated and you need credit on your mobile too. In order to join the government gateway they send you a number in the post that takes 9 days to arrive. Getting on to the gateway ended up taking two weeks and three calls, as there is errors on their database. Once I got in self assessment was hugely complicated and when I thought I had completed it, yesterday I got a letter which says I've done it wrong. So now I assume I'm being fined £10 a day. I have cried so much over this.
    A tax break to help married couples they said.
    They can bloody well keep it. Stay away.
    • Dazed and confused
    • By Dazed and confused 23rd Sep 17, 9:11 AM
    • 1,868 Posts
    • 831 Thanks
    Dazed and confused
    Marriage Allowance is now in it's third year so unless you only applied for a single year (which your post suggests isn't the case) you would, as a couple, have benefited by a maximum of £662 so it seems like you are only counting the benefit from one year not the overall picture.

    You should have been able to make a payment on your personal tax account which is very easy to register for and get into. I've only used it to check my state pension but it was pretty straightforward to register and access.

    You may have had some poor advice but from other posters who have ignored HMRC requests to pay PAYE tax owed it takes several months before HMRC lose patience and send you a tax return to try and formalise things.

    I'm at a loss as to why your self assessment would be complicated, did you have anything more to enter than your salary and marriage allowance claim?
    • Dazed and confused
    • By Dazed and confused 23rd Sep 17, 9:12 AM
    • 1,868 Posts
    • 831 Thanks
    Dazed and confused
    When you say you've done it wrong do you mean you are being investigated for making an incorrect return or was the form sent back because you haven't filled it in correctly?
    • ghanchi
    • By ghanchi 23rd Sep 17, 12:09 PM
    • 1 Posts
    • 0 Thanks
    ghanchi
    My husband works part time and I am a stay at home mum, do I qualify ?
    • bob bank spanker
    • By bob bank spanker 23rd Sep 17, 12:10 PM
    • 538 Posts
    • 1,038 Thanks
    bob bank spanker
    My husband works part time and I am a stay at home mum, do I qualify ?
    Originally posted by ghanchi
    https://www.gov.uk/marriage-allowance
    • Consumerist
    • By Consumerist 23rd Sep 17, 12:12 PM
    • 4,668 Posts
    • 2,320 Thanks
    Consumerist
    . . . I work at their school and only earn 10,522 a year. My husband is a public sector worker on 32,500 so this tax break seemed made for us. . .
    Originally posted by Kathykat
    It seems to me that many people don't properly understand that Marriage Allowance is not a simple gift from HMRC but a transfer of part of one person's allowance to their spouse.

    In your case, you are transferring £1,150 (2017/18) of your allowance to your husband. This means that your allowance will reduce by £1,150 and your husband's allowance will increase by the same amount.

    From your numbers, your allowance will become £11,500 - £1,150 = £10,350. If your income is £10,522 then you will be liable for tax on the difference (£172) which creates a tax liability for you of 20% of that £172 = £34.40 for this tax year.

    If your claim has been backdated to 2015/16 then a similar liability may have occurred for previous years.

    As a couple, however, you will be better off because of the rebate received by your husband.

    Edit
    Sorry, can't subtract. Numbers corrected.
    Last edited by Consumerist; 23-09-2017 at 1:08 PM.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • badmemory
    • By badmemory 23rd Sep 17, 12:57 PM
    • 953 Posts
    • 989 Thanks
    badmemory
    Part of the problem is that the papers just keep getting it wrong. Late last night the BBC printed an article about how half the people entitled had not claimed. They then went on to say that the person paying tax could give their partner 10% of their tax code. Definitely not true. They have corrected it now to read the person not paying tax.

    How many people thinking of claiming do not understand the process & just how easy is it to find out. If HMRC are so sure 2.2 million are underclaiming why not send out a letter to them (explaining properly) instead of letting the newspapers print bul*****?
    • bob bank spanker
    • By bob bank spanker 23rd Sep 17, 1:19 PM
    • 538 Posts
    • 1,038 Thanks
    bob bank spanker
    How many people thinking of claiming do not understand the process & just how easy is it to find out. If HMRC are so sure 2.2 million are underclaiming why not send out a letter to them (explaining properly) instead of letting the newspapers print bul*****?
    Originally posted by badmemory
    Is that fair? I don't think HMRC are obliged to give out tax planning advice, and this whole "story" was the result of a FOI request from Royal London - who are obviously keen to create copy. Only about a quarter of people I know who are entitled to claim higher rate relief on their DB pension contributions actually do so, I don't think it's HMRC's place to advise them either.
    • badmemory
    • By badmemory 23rd Sep 17, 2:17 PM
    • 953 Posts
    • 989 Thanks
    badmemory
    Then maybe it is time HMRC produce a booklet called something along the lines of your responibilities & send it to every single tax payer. Unfortunately, most of us pick up our knowledge of tax as we go, if you happen to miss a bit the HMRC seem to delight in charging penalties not for the second infraction which would be understandable but for the first. For something which to a layman can seem totally illogical. Most of us have spent all our working lives on PAYE & a few years ago would never have had to get involved with self assessment just because you get child benefit.
    Last edited by badmemory; 23-09-2017 at 2:19 PM.
    • Johnnyboy11
    • By Johnnyboy11 23rd Sep 17, 2:22 PM
    • 12 Posts
    • 11 Thanks
    Johnnyboy11
    Here's a tricky question on eligibility...

    I am Non-UK resident and live and work in the Middle East (Qatar) and earn a lot, but have no relevant UK earnings. My wife is a high earner in the UK, but pays a fair amount into a private pension so that her relevant UK earnings are within the basic tax bracket.

    Can we apply for the Marriage Allowance to reduce my wife's tax bill?
    • polymaff
    • By polymaff 23rd Sep 17, 5:12 PM
    • 1,774 Posts
    • 760 Thanks
    polymaff
    Here's a tricky question on eligibility...

    I am Non-UK resident and live and work in the Middle East (Qatar) and earn a lot, but have no relevant UK earnings. My wife is a high earner in the UK, but pays a fair amount into a private pension so that her relevant UK earnings are within the basic tax bracket.

    Can we apply for the Marriage Allowance to reduce my wife's tax bill?
    Originally posted by Johnnyboy11
    Have you a UK Personal Allowance to transfer to your wife?
    • polymaff
    • By polymaff 23rd Sep 17, 5:16 PM
    • 1,774 Posts
    • 760 Thanks
    polymaff
    ... If HMRC are so sure 2.2 million are underclaiming why not send out a letter to them (explaining properly) instead of letting the newspapers print bul*****?
    Originally posted by badmemory
    A waste of time, as just about all the advice that HMRC have given about MAT is, indeed, bul*****

    The media (newspapers, radio and TV) you castigate just repeat that HMRC-originated bul*****
    • polymaff
    • By polymaff 23rd Sep 17, 5:22 PM
    • 1,774 Posts
    • 760 Thanks
    polymaff
    It seems to me that many people don't properly understand that Marriage Allowance is not a simple gift from HMRC but a transfer of part of one person's allowance to their spouse.

    In your case, you are transferring £1,150 (2017/18) of your allowance to your husband. This means that your allowance will reduce by £1,150 and your husband's allowance will increase by the same amount.
    Originally posted by Consumerist
    You, included. The recipient's "allowance" - sloppy terminology - does NOT increase one jot.
    • Johnnyboy11
    • By Johnnyboy11 24th Sep 17, 10:08 AM
    • 12 Posts
    • 11 Thanks
    Johnnyboy11
    Have you a UK Personal Allowance to transfer to your wife?
    Originally posted by polymaff
    Yes, I think, all UK expats currently get a Personal Allowance.
    • dori2o
    • By dori2o 24th Sep 17, 10:17 AM
    • 7,343 Posts
    • 12,243 Thanks
    dori2o
    I will be the one receiving the benefit. I will be asking my spouse to contact HMRC to initiate it.
    Originally posted by rajeshwarsrm
    Do it online and set up a personal tax account.uch easier than phoning and available to do 24-7.
    To equate judgement and wisdom with occupation is at best . . . insulting.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,497Posts Today

9,554Users online

Martin's Twitter