Marriage Allowance

Dazed_and_confused

if my spouse is not working then can she still claim MA or she has to be working but not eligible to pay any tax?

She can be earning £40k and still be eligible for Marriage Allowance.

But there would very rarely be any benefit (to you as a couple) from her applying in that situation.

If she has no taxable income then she is both eligible and you can benefit (assuming you aren't considered a higher rate payer).

polymaff

Ghostcrawler wrote: »

if my spouse is not working then can she still claim MA or she has to be working but not eligible to pay any tax?

You are suffering from HMRC and other "expert" misinformation!

Providing that you are UK resident for tax purposes, the only income disqualifier is if either party to the MAT is - or would as a result of MAT be - classified as a higher-rate taxpayer.

Providing both parties meet the above requirement, having taxable income does not affect the applicant's elgibility - only the resulting benefit to the two parties involved.

Ghostcrawler

now I am a higher rate tax payer but I think I can get a rebate by back claiming by up to four years right? 4 years back I was at 45k. I will look at gov.uk on how she can apply.

Dazed_and_confused

now I am a higher rate tax payer but I think I can get a rebate by back claiming by up to four years right? 4 years back I was at 45k. I will look at gov.uk on how she can apply.

You are best off checking both sides then.

What would be the impact each tax year on your wife if she applied? Possibly none.

Would you be able to benefit? Any tax year where you are liable to higher rate tax means you aren't eligible. And any year where you aren't liable to higher rate tax but have dividend income which would be liable at the dividend higher rate of tax if it weren't for the dividend nil rate of tax (aka dividend allowance) then you aren't eligible.

polymaff

Ghostcrawler wrote: »

4 years back I was at 45k

Four years ago (2015/6) the higher rate threshold was £42,385...:(

Ghostcrawler

oh shoot, I will check the threshold, I assumed that it has been 50k. thanks

Ghostcrawler

@polymaff - I tried to look for higer rate threshold since 2015/16 and couldn't find anywhere, do you have the £number since then?

polymaff

Ghostcrawler wrote: »

@polymaff - I tried to look for higer rate threshold since 2015/16 and couldn't find anywhere, do you have the £number since then?

It is the sum of the Personal Allowance(s) and the Basic Rate Band. These can vary in individual cases but the common case is:

16/17: £43,000
17/18: £45,000
18/19: £46,350
19/20: £50,000

In Britain - anyway.

https://www.mygov.scot/income-tax-rates-and-personal-allowances/

highguyuk

OH (MAT Donor) and I (MAT beneficiary) have been filling out OH self-assessment tonight for 18-19.

We got to the point in the assessment where it asks for my details for transferring the benefit to, but the form stated that the details we inputted didn't match their records (they only ask for name, DOB, NI & date of marriage!).

I have an apostrophe in my surname (not a name for modern day technology!), so tried a couple of attempts to see if it worked.

However, after 3 attempts the form now declares:
"Error: As you have already made three attempts to match your Recipient details, you cannot select to transfer your Marriage allowance on this return".

Anyone had this before? Seems very odd, especially that it would lock you out for the year.

EDIT: Only OH is required to self-assess.

Dazed_and_confused

Just file the returns as they are, without Marriage Allowance.

Wait a few days (say middle of next week) and check your Self Assessment accounts to see that they have both been processed by HMRC.

Phone HMRC (both of you available of speak to the advisor) and ask them to change each return so your OH gets the reduced Personal Allowance and you get the Marriage Allowance tax credit.

Job done.