Marriage Allowance

polymaff

GrantWoody75 wrote: »

I've received a repayment of £429 which I'm told is for 2015/16 and 2016/17.

My wife has now received a demand for £435 for 2015/16 and 2016/17..

Can you check the breakdown of those figures? We can't analyse your wife's figure without knowing her income in the two years, but your MAT credits should be even numbers of £s.

Dazed_and_confused

polymaff

If the op is an employee not self employed then I think the figures make sense.

Op appears to have received the full MA credit for 2015:16 and 2016:17 less the tax they would owe because of the tax tables their employer would have used i.e. extra £9 allowances given in year which reduces the refund.

Conversely his spouse has given away 10% of their Personal Allowance so they owe an equivalent amount but they are having to pay the small amount owed under PAYE which is usually ignored.

The two combined gives (roughly) the £6 difference between refund the bill.

Given the op's comment "Did I get this badly wrong....." it seems likely he has persuaded his spouse to apply for Marriage Allowance without going to the trouble of actually checking what her income is in the relevant tax years.

Consumerist

I would have thought, though, that the rebate/underpayment for 2015/16 and 2016/17 would have been processed directly by HMRC rather than through PAYE which would be the case for 2017/18. I'm assuming here that the application for MA was during the current tax year.

Dazed_and_confused

Yes it would be direct not included in the current tax code but whenever they have sent me a refund they have sent a calculation showing the accurate position.

So when I have claimed work expenses of £500 they didn't send me £100 I got a calculation which showed my overall tax details for the year and I got a refund of £98, which I thought was the norm?

philip1701

My partner called up to transfer their allowance to me and I got a confirmation in the post within a week - would call them. The person transferring the allowance will need to be the one who calls.

PollyArthr

I successfully received my husbands marriage allowance for - 2016-2017. However today I have received a letter saying I owe tax of £222.40 as the allowance had been cancelled. The reason for the cancellation I have been told is because his annual income was £10,014 and he has to have earned less than £9,900. Where do they get this figure from. Why did they allow it to go through in the first place?

polymaff

PollyArthr wrote: »

I successfully received my husbands marriage allowance for - 2016-2017. However today I have received a letter saying I owe tax of £222.40 as the allowance had been cancelled. The reason for the cancellation I have been told is because his annual income was £10,014 and he has to have earned less than £9,900. Where do they get this figure from. Why did they allow it to go through in the first place?

Well, if they've said that, it is inconsistent with previous practice - which has been to give the recipient the full transfer and then tax the donor - in your husband's case - 20% of £114.

What is the exact breakdown of that £222.40 and are you classified as a higher-rate taxpayer?

sheramber

Does our husband have any other income such as bank interest, rents received etc?

Caela

I applied to transfer to my husband in July. I didn't realise I was over on my tax last year and thought we would be rejected if I was. My husband received a cheque in August (we had applied for the uniform rebate at the same time). No specification for amounts allocated to which.


Yesterday i received two letters from HMRC. One stating I had not paid enough tax in 2015/2016 and must pay £209.40 due to the marriage allowance. The other letter stated the same for 2016/17 but for £222. Both amounts to be paid by 31st Jan 2018.


I called HMRC and said surely if I had not had the tax to transfer, they should not have sent a chq. their reply was it's not our responsibilty to check. Really ???? You are HMRC - you have all my details of total income and tax. They say it's my mistake and it has to be repaid in 13 weeks.


I don't know what to do???


Taken from Martin's blog below
Although the onus is on you to check you're eligible, HMRC will write to inform you if you're not – although you may have to wait a few weeks

Caela

Yes I've had the exact same issue. Called HMRC and had an extremely unhelpful lady. Said it's my responsibilty to know if I was entitled and they do not check. Sent my husband a cheque in August and now I have had two tax demands - 2015/16 £209.40 and 2016/17 £222 - all to be paid back by 31st Jan 2018. She wouldn't cancel it for 2017/18 either - said my husband has to do it even though I set it up