MSE News: Couples now able to register to shift tax allowance between spouses

Mabeldog

Hello - long time since I've posted here ..... this may have already been answered if so please direct me...

Up and till recently both my Wife and I are under the tax threshold - we are both employed part time via PAYE - although we don't pay any Tax - however this current Tax year 2015/16 I've been doing some consultancy work as well as my usual job which is going to take me over the threshold - however I won't know how much until I do my self assessment on this as that is Self Employed work - my wife's income will remain the same so can I use her "unused" tax allowance in my situation and if so how will it be adjusted and/or worked out ?? Don't want to complicate things if it's best to leave things as it is Thanks in advance

Lungboy

p00hsticks wrote: »

Well, the rebate's come because as well as giving you the extra £1060 marriage allowance, they appear to have changed your underlying code from 240T to the standard basic rate 1060L - giving you an additional £8,200 allowance.

But without knowing what the reasoning is it's impossible to say whether that's right or not. you should have got a coding notice (probably around this time last year) to explain why your original code was only 240T - what did that say and did you agree with it ?

Do you have (or have you had recently ?) more than one job / source of income ?

I'll have to dig out the paperwork to see why I was on 240T. I've not had 2 sources of income since a private pension stopped in 2012, just the one job since then.

diceydeb

I did mine over the phone ,only one of us working. It was simple and in my next wage a nice £197 rebate 😊

wellington66

I Registered for my husband to receive £1060 of my allowance in January this year which was dealt with fast and efficient, you say that you don't have to claim again for 2016-17 but he as had is new tax code come and it is only for the new rate personal allowance £11000, will i now have to claim again.

GraemeH

My wife and I both received confirmation from HMRC in early February of change of coding for 2015/16 following my wife's election to transfer £1060 of her allowance to me. We also received new coding notices for 2016/17 showing continuation of the transfer (now at increased rate of £1100).
Trying to be ultra efficient, I completed an online tax return for 2015/16 yesterday, 6th April 2016 (the very earliest it was possible to do so as it was the first day of the new tax tear). No problems encountered until it reached the final calculation of my tax liability when it insisted on allowing me only the standard personal allowance and no mention of the transfer from my wife. As such it wanted to charge me an additional £212 in tax (ie £1060 x 20%) that is NOT due!
Today, I called HMRC to try to resolve this and after two calls (the first being conveniently disconnected) and speaking to 3 different people I was advised that this is a known issue. Apparently, even though HMRC's own records correctly show the transfer of allowance, the online calculation will not take account of it unless the DONOR of the allowance has first completed and had accepted their own tax return. If done online this apparently takes 72 hours to update the donor's HMRC account and a further 3 to 7 days to migrate onto the RECIPIENT'S online record. Only after that can the recipient have their tax liability accurately calculated online taking account of the tax allowance transferred to them.
Surely there has to be a simpler way?
Fortunately, this should only be a problem this year as 2015/16 was the first year of the system but watch this space...................................!

toolsalival

Hello. My Wife is self employed and has been earning less than her allowance for the last few years. We tried to complete online and it says she needs one of the following to prove her identity:

• the last 4 digits of the account that your child benefit, tax credits or pension is paid into
• the last 4 digits of an account that pays you interest
• details from your P60
• details from any of your 3 most recent payslips

She has none of these. On top of this the online application is not working and it advises to 'come back later'. Any ideas what else could be used please?


Thank you.

pafpcg

GraemeH wrote: »

Only after that can the recipient have their tax liability accurately calculated online taking account of the tax allowance transferred to them.

Thank you for reporting the response from HMRC. I posted exactly the same problem in the "Marriage Allowance" thread yesterday, but all I did was to report the problem to HMRC using their electronic messaging system (with no response yet). So, I'll have to wait a week before being able to get the definitive calculation and to submit my return. Ah well, still quicker than the old days of sending paper tax forms by post, then waiting weeks & months!

Darksparkle

toolsalival wrote: »

Hello. My Wife is self employed and has been earning less than her allowance for the last few years. We tried to complete online and it says she needs one of the following to prove her identity:

• the last 4 digits of the account that your child benefit, tax credits or pension is paid into
• the last 4 digits of an account that pays you interest
• details from your P60
• details from any of your 3 most recent payslips

She has none of these. On top of this the online application is not working and it advises to 'come back later'. Any ideas what else could be used please?


Thank you.

Tell her to call them instead.

dori2o

toolsalival wrote: »

Hello. My Wife is self employed and has been earning less than her allowance for the last few years. We tried to complete online and it says she needs one of the following to prove her identity:

• the last 4 digits of the account that your child benefit, tax credits or pension is paid into
• the last 4 digits of an account that pays you interest
• details from your P60
• details from any of your 3 most recent payslips

She has none of these. On top of this the online application is not working and it advises to 'come back later'. Any ideas what else could be used please?


Thank you.

Phone up and do it over the phone, you don't need that additional information.

dori2o

GraemeH wrote: »

My wife and I both received confirmation from HMRC in early February of change of coding for 2015/16 following my wife's election to transfer £1060 of her allowance to me. We also received new coding notices for 2016/17 showing continuation of the transfer (now at increased rate of £1100).
Trying to be ultra efficient, I completed an online tax return for 2015/16 yesterday, 6th April 2016 (the very earliest it was possible to do so as it was the first day of the new tax tear). No problems encountered until it reached the final calculation of my tax liability when it insisted on allowing me only the standard personal allowance and no mention of the transfer from my wife. As such it wanted to charge me an additional £212 in tax (ie £1060 x 20%) that is NOT due!
Today, I called HMRC to try to resolve this and after two calls (the first being conveniently disconnected) and speaking to 3 different people I was advised that this is a known issue. Apparently, even though HMRC's own records correctly show the transfer of allowance, the online calculation will not take account of it unless the DONOR of the allowance has first completed and had accepted their own tax return. If done online this apparently takes 72 hours to update the donor's HMRC account and a further 3 to 7 days to migrate onto the RECIPIENT'S online record. Only after that can the recipient have their tax liability accurately calculated online taking account of the tax allowance transferred to them.
Surely there has to be a simpler way?
Fortunately, this should only be a problem this year as 2015/16 was the first year of the system but watch this space...................................!

This isn't quite right.

Where BOTH the RECIPIENT and the TRANSFEROR are in SA, the RECIPIENT will receive a credit of £212 on their SA statement once the TRANSFEROR has submitted their tax return with the correctly completed Marriage Allowance section completed.

Where the TRANSFEROR is in SA but the RECIPIENT is not, the relief will be given by way of an additional allowance in the tax code.

Where the RECIPIENT is in SA but the TRANSFEROR is not, a credit of £212 will be introduced onto the Recipients SA statement once the tax return is completed assuming a claim for Marriage Allowance has been made already.

Where neither is in SA the claim is dealt with by way of tax code adjustments.

In all cases the initial Marriage Allowance claim must have been made outside of SA. You CAN NOT make a first time/initial Marriage Allowance claim directly on the SA return, you must complete the process either online or over the phone to set up the link between the 2 taxpayers otherwise the record won't be linked and no credits/code changes will take place.