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

Shedman

dori2o wrote: »

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.

What is your basis for this contention. Can you point to a reference as there is nothing on the SA form to indicate that you must have made the claim outside of SA first of all?

Phil.I.P

It worked for my wife and I. Did it by phone rather than online.

I could hardly believe how quickly the application was processed - two weeks approximately.

Refund of £197 at the end of March and a new increased tax allowance in place for 16/17.

Thank you for highlighting this!

pafpcg

dori2o wrote: »

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.

Sorry, but I think I have to take issue with you.

I'm assuming that GraemeH was referring to the case where both donor and recipient ARE both in Self-Assessment (SA). It certainly matches my experience when completing the SA tax returns for myself and my wife on 6th April. Can you enlighten me with exactly what you think he hasn't got quite right, because I can see no flaw in his statement.

[And with apologies for being pedantic, but in your scenario for both being in SA, the recipient would not necessarily get a £212 (tax) credit. In the circumstance where the recipient's gross income is, say, £100 greater than the £10600 Personal Allowance, the benefit from the £1060 Marriage Allowance would be only £20! You should have said that the recipient's allowances would be credited with £1060.]

pafpcg

Further to my posting #349 last week, I've have a response from HMRC:

Thank you for your online enquiry. Your marriage allowance will automatically be included in your 2015-16 calculation when you have submitted the tax return. Regards eContact Team www.hmrc.gov.uk

That doesn't inspire confidence! I've replied asking why doesn't the Marriage Allowance appear in the calculation BEFORE we click the submit button. That way we know the allowance has been transferred and we don't run the risk of wasting our time (and theirs!) chasing HMRC about a mistake in their calculation after the tax return has been finalised.

I wonder if they've made it easy to donate the £1060 allowance because it potentially increases the tax the donor pays, but are slow to add the allowance to the recipient's allowances because that reduces the tax paid. Cynical? Me?

katy54

Can someone tell me the phone number fot the marraige tax allowance -please -phoned ages ago and have heard nothing

sheramber

pafpcg wrote: »

Further to my posting #349 last week, I've have a response from HMRC:
That doesn't inspire confidence! I've replied asking why doesn't the Marriage Allowance appear in the calculation BEFORE we click the submit button. That way we know the allowance has been transferred and we don't run the risk of wasting our time (and theirs!) chasing HMRC about a mistake in their calculation after the tax return has been finalised.

I wonder if they've made it easy to donate the £1060 allowance because it potentially increases the tax the donor pays, but are slow to add the allowance to the recipient's allowances because that reduces the tax paid. Cynical? Me?

Because you can't claim the allowance , you can only transfer it. People could claim it on the tax return when not due it.

The credit for the transfer will be added to your statement of account and deducted from the total tax shown as due.

sheramber

katy54 wrote: »

Can someone tell me the phone number fot the marraige tax allowance -please -phoned ages ago and have heard nothing

Try this one
HMRC will also accept claims by telephone by contacting it on its general helpline number 0300 200 3300. To be put through to the right person, you should state that you are calling about the “marriage allowance”. Before calling, make sure you have both your own and your spouse’s NI numbers. You will also need a way to prove your identity by providing either:

the last four digits of the bank account number that your child benefit, tax credits or state pension are paid into; or

the last four digits of a bank account that pays you interest; or

details from your P60.

Note. The claim needs to be made by the spouse with the lower income.

Markie11

I have a query on this subject and hope that somebody could advise. The current situation is that we've not applied for this allowance to date. For this current financial year (16/17) my wife earns more than the tax threshold so it's a pointless exercise applying for the allowance for this year. However, she earned well under the tax threshold for the year 15/16, so should be able to recover the full £212. Do you know if it's possible to just apply for a refund for the previous year only?

I appreciate a quick phone call to the HMRC will give me the answer, but it's not often a 'Quick' call.

Darksparkle

Markie11 wrote: »

I have a query on this subject and hope that somebody could advise. The current situation is that we've not applied for this allowance to date. For this current financial year (16/17) my wife earns more than the tax threshold so it's a pointless exercise applying for the allowance for this year. However, she earned well under the tax threshold for the year 15/16, so should be able to recover the full £212. Do you know if it's possible to just apply for a refund for the previous year only?

I appreciate a quick phone call to the HMRC will give me the answer, but it's not often a 'Quick' call.

It is possible but I don't believe you can do it online just for last year. The easiest thing would be to call. Most people have said its been easy to sort over the phone.

mardatha

Has anybody said yet if this can be backdated to previous years? I'm on the basic State Pension - around 5 grand a year - and have transferred my allowance to my husband, who has a State and a work pension. Would be nice if we got a wee tax rebate.... sigh