Marriage Allowance

Bowbow1

Had a refund of 218 and a few pennies but then had a bill off inland revenue for 238 been had a beauty. But now works fine so dont be surprised if this happens to you.

rhapsody7

Applied for this allowance through HMRC and we've just received a number of letters each with backdated amounts from the tax year 2015/16. My husband has paid too much tax in the amounts of £212 for 2015/16, £431 for 2016/17 and £615 for 2017/18 with the most recent figure being the total as the result from each year is carried forward to the next. Therefore final total figure is £615 which he's received a cheque for.
I however haven't paid enough tax, so for 2015/16 I paid £214 too little, 2016/17 £436 too little and 2017/18 £668 too little. The £668 is the total figure for the most recent tax year as the result from each year is carried forward to the next.

Any explanation what happens to my tax contributions now? It's as if we need to keep my husband's cheque in the bank to clear ready to pay the tax I owe! We're actually around £50 in debt so have defintely not gained anything, or am I getting this wrong??

polymaff

rhapsody7 wrote: »

Applied for this allowance through HMRC and we've just received a number of letters each with backdated amounts from the tax year 2015/16. My husband has paid too much tax in the amounts of £212 for 2015/16, £431 for 2016/17 and £615 for 2017/18 with the most recent figure being the total as the result from each year is carried forward to the next. Therefore final total figure is £615 which he's received a cheque for.
I however haven't paid enough tax, so for 2015/16 I paid £214 too little, 2016/17 £436 too little and 2017/18 £668 too little. The £668 is the total figure for the most recent tax year as the result from each year is carried forward to the next.

Any explanation what happens to my tax contributions now? It's as if we need to keep my husband's cheque in the bank to clear ready to pay the tax I owe! We're actually around £50 in debt so have defintely not gained anything, or am I getting this wrong??

It is likely that your credits and debits involve other tax adjustments - and that these will explain the difference in total benefit.

You certainly won't be *alone, though, in finding that MAT just transfers £x between spouses.


EDIT: *See the post immediately before your own.

rhapsody7

Do you think it's a case of me not noticing them taking back what I owe? I'm just worried that my pay will be short now.

polymaff

rhapsody7 wrote: »

Do you think it's a case of me not noticing them taking back what I owe? I'm just worried that my pay will be short now.

Only you know how HMRC have been / are planning to collect the tax you owe. You need to look back over your pay-slips and PAYE coding.

Still, if they have let the debt mount - you (plural) have the £615. Look on that as an interest-free loan from the rest of us.

Seriously, the media and HMRC have got MAT so wrong it is a scandal. When BBC Moneybox completely mis-sold MAT it took them three attempts to admit that they'd got it wrong - the third email making the limp excuse - "Yes, but we've had lots of emails from people saying that they are going to apply!"

Like yourself, maybe.

The road to hell .....

sheramber

rhapsody7 wrote: »

Do you think it's a case of me not noticing them taking back what I owe? I'm just worried that my pay will be short now.

Do you realise that when you transfer the marriage allowance your personal allowances are reduced.

If you were already paying tax then you did not have any excess personal allowances to transfer so you are now due to pay the tax due on the allowances transferred.

Marriage Allowance is not an additional allowance ,
It is a transfer of allowances from one person to the other. So the one transferring has reduced personal allowances and the person receiving the transfer gets a credit deducted from their liability.

Dazed_and_confused

Applied for this allowance through HMRC

Why did you apply for the particular tax years?

Did you understand the consequences of what you were doing before you applied?

Have you applied for the 2018:19 tax year as well and if so what is your income (taxable pay, pension etc) in that tax year?

You might end up owing another £240 for 2018:19 yet.

Has your husband offered to pay most of your tax debt?

rhapsody7

I applied for the years after 2015 which is when it came into effect. I didn't expect there to be any consequences. Either we gained from it or we didn't. We have applied for 2018/19. My husband and I are keeping the cheque we got in our separate account ready for if I haven't paid enough. Who's fault is it that I haven't paid enough? I work for a very well known company, I'm not self-employed. My tax is automatically taken out every month.

Dazed_and_confused

Based on what you have posted so far it looks like it's your fault.

Providing you arent classed as a higher rate taxpayer or you/your spouse isn't claiming Married Couple's Allowance then you are eligible for Marriage Allowance.

But it seems you have applied for it when when your income was so high it wasn't beneficial for you (as a couple) to do so.

ready for if I haven't paid enough.

I don't understand this. You havent paid enough tax. You owe £668. Plus maybe another £240 for the 2018:19 tax year.

rhapsody7

I don’t see it as being my fault. I’ve never been responsible for my own tax in my life as I’ve always been an employee. I guess I should never have applied for marriage allowance. I’m clearly out of my depth and don’t understand any of it. All I’m concerned about is now my tax code has changed going into this new tax year, my wages will be a lot less than they were due to paying more tax going forward. Therefore the cheque we’ve just received will hopefully cover this.