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  • FIRST POST
    • Tashamic
    • By Tashamic 9th Oct 17, 11:29 AM
    • 1Posts
    • 0Thanks
    Tashamic
    Marriage tax allowance
    • #1
    • 9th Oct 17, 11:29 AM
    Marriage tax allowance 9th Oct 17 at 11:29 AM
    Hi, after listening to Martin on GMTV, I went online and filled in the married persons tax allowance, as I only earn £11900 and my husband earns less than me. It was all quite simple and then I received a tax rebate for the year 2016/17 but in the same post, my husband received 3 letters from IR stating that he has underpaid his tax and he now owes them hundreds of pounds!!!!! We did not realise we would need to take into consideration his pension that he receives. It would appear that with his wages and his pension he is over the bracket for his income.
    Rather than IR just letting me know this they have processed my claim and now this will remain live until next April when I will need to contact them and cancel it.
    Is there anything I can do to stop this now, I do not want my husband getting another bill for unpaid tax. He is going to have to repay this amount over the next 12 months which is going to be a large chunk of his wages gone.
    If anyone has been in this situation or knows how I can get out of it then please let me know, I have not paid the cheque in for the rebate as I am not sure that I am even entitled to all of it as I only pay a very small amount of tax per month.
    I really could do with some help!!!
Page 1
    • polymaff
    • By polymaff 9th Oct 17, 1:02 PM
    • 1,741 Posts
    • 755 Thanks
    polymaff
    • #2
    • 9th Oct 17, 1:02 PM
    • #2
    • 9th Oct 17, 1:02 PM
    Hi, after listening to Martin on GMTV, I went online and filled in the married persons tax allowance, as I only earn £11900 and my husband earns less than me. It was all quite simple and then I received a tax rebate for the year 2016/17 but in the same post, my husband received 3 letters from IR stating that he has underpaid his tax and he now owes them hundreds of pounds!!!!! We did not realise we would need to take into consideration his pension that he receives. It would appear that with his wages and his pension he is over the bracket for his income.
    Rather than IR just letting me know this they have processed my claim and now this will remain live until next April when I will need to contact them and cancel it.
    Is there anything I can do to stop this now, I do not want my husband getting another bill for unpaid tax. He is going to have to repay this amount over the next 12 months which is going to be a large chunk of his wages gone.
    If anyone has been in this situation or knows how I can get out of it then please let me know, I have not paid the cheque in for the rebate as I am not sure that I am even entitled to all of it as I only pay a very small amount of tax per month.
    I really could do with some help!!!
    Originally posted by Tashamic
    Folk like the Lewises need to read stories like yours. It might just dent their halos. (though I doubt that they'll take heed!)

    Before you panic, just see if the rebate balances the extra your spouse will pay due to the MAT. It is rare for there to be an overall loss with MAT.
    • sheramber
    • By sheramber 9th Oct 17, 1:52 PM
    • 3,755 Posts
    • 2,765 Thanks
    sheramber
    • #3
    • 9th Oct 17, 1:52 PM
    • #3
    • 9th Oct 17, 1:52 PM
    The transfer can be cancelled but note the difference between who cancels the transfer- your partner who transferred it or you who received it.

    https://www.gov.uk/marriage-allowance/if-your-circumstances-change
    • Dazed and confused
    • By Dazed and confused 9th Oct 17, 8:32 PM
    • 1,769 Posts
    • 769 Thanks
    Dazed and confused
    • #4
    • 9th Oct 17, 8:32 PM
    • #4
    • 9th Oct 17, 8:32 PM
    You really haven't provided sufficient information to know whether applying was the correct thing to do or not.

    As polymaff says for some couples the transferor (the person who applies) will end up with a bill but the recipient of the Marriage Allowance will get a similar, or larger, refund so overall as a couple it is still worth doing.

    Before making any further rash decisions you would be best served by checking how much tax your hubby owes for each year and comparing that with the refund you have received for the corresponding years.

    If your husband applied back to the start of Marriage Allowance then your refund would normally cover two full tax years, 2015:16 and 2016:17. What you are earning now, in 2017:18, has absolutely no relevance to the position for prior years when you could have been earning totally different amounts.
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