Marriage Allowance

sheramber

rhapsody7 wrote: »

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.

In your case you have elected to give some of your personal allowance- Marriage Allowance. therefore your code number is reduced and you pay more tax.
Your husband gets a credit from your allowances so he had overpaid tax due to now adding in that credit so he got a refund.





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.

Marriage Allowance is beneficial if the lower paid person is not paying tax on their income.

If you were already paying tax then it is not beneficial to you.

You pay more tax but your husband pays less, so as a couple it works out the same.

for 2018/19 your personal allowance is 11850
by claiming Marriage Allowance your personal allowance is reduced by 10% so becomes

11850 - 1185 = 10665

Instead of having a tax free amount of 11850 before you pay tax you now only have a tax free amount of only 10665.

Dazed_and_confused

To be honest the fact that your tax code for 2019:20 is able to include the £668 tax you owe would suggest your taxable wages/salary is far too much for Marriage Allowance to be of any benefit to you as a couple.

The cheque clearly won't cover it. You owe £53 more than your husband received so even he pays you 1/12th of that each month you will still have £4.40 less take home pay each month than you otherwise would. Plus an additional £20.83/month less take home pay if the Marriage Allowance continues into 2019:20. But at least your husband will be £20.83 better off each month in his wages in 2019:20 (assuming he would normally pay at least that much in tax each month).

I’ve never been responsible for my own tax in my life as I’ve always been an employee.

You are always responsible for your own tax. It might just be that up until now you have had fairly straightforward tax affairs and there has no need/reason for you to get involved.

rhapsody7

Guilty indeed!!! Been on the phone to HMRC and now returning the cheque. Moving on!

polymaff

Don't be hasty. You might do better to bank the cheque and then let HMRC recover the money through your tax code.


If returning the cheque has been suggested or OK'd by someone on the phone, remember that whatever you've (think you've) agreed is with the same organisation that was part of flim-flamming you into MAT in the first place.


If that cheque gets lost - who do you think is going to get blamed?

Dazed_and_confused

You are confusing HMRC (a free service) with a private company.

polymaff

You cheeky so-and-so.


D&C's response to the limited information you've provided is totally valid.

Dazed_and_confused

This morning's post has mysteriously disappeared!

Presumably the op realised the error of their ways

DParrock

I took it off because people were rude and not taking my comments seriously!!!!!!!!!!!!

Dazed_and_confused

Your post was being taken seriously.

From what you posted it seems that you have used a private company to make a tax refund claim. And that company has kept part of the repayment as their fee. And charged VAT.

Had you successfully made the same claim direct to HMRC then you would have received 100% of the refund due.

HMRC do not charge individuals a fee for refunding overpaid tax.

There are regular posts on here about these types of companies.

You have either learnt a valuable lesson or are satisfied with the service they have provided and would use them again (should the need arise).

Asghar

Dazed_and_confused wrote: »

From what you posted it seems that you have used a private company to make a tax refund claim. And that company has kept part of the repayment as their fee. And charged VAT.

Exactly, the private company charged you a fee, including VAT and you were moaning as if it was HMRC who actually charged you the fee.

It was not HMRC but rather the company who you authorised to act on your behalf.