Marriage Allowance

Silverbird65

Hi I am a pensioner with savings income too and a small company pension. Would I cause my income to merit tax if I claim marriage allce for hi by who works. It could turn out not to our advantage 😉

Dazed_and_confused

Savings income can be taxed at 0% so it is possible to have taxable income greater than your (reduced) Personal Allowance and it still be beneficial.

Why not post income* details for a particular tax year and it should be possible to say one way or another.

*separate amounts for each type of taxable income

Heedtheadvice

Coming to this thread late I have not read all the posts, just the last few pages.


It seems I have similar issues to several posters -lack of MAT showing in tax return although included in coding notice and of long standing.


I too was advised by HMRC that there is a known internal system problem at HMRC (far from the first in my experience!) and that the error showing in my SA302 should self correct when they apply MAT.


Additionally there is another HMRC internal error on the return showing erroneously that I owe unpaid tax from previous years. I completed the return as nil with HMRC's own documentary proof.


One week later my account now shows a significant amount in overpaid tax but the available online calculation still shows tax owed!


I currently have no calculation to show what the correct tax position is, so...


Will the online calc get updated to show how the overpayment/rebate is calculated?
If not an you tell me how or where to find the calculation?


As in previous recent tax years, owing to HMRC's internal errors and systems not communicating between themselves properly (HMRC's own admissions), I have little confidence in them getting things right.



As a point of note; the erroneous tax owed figure was the subject of much communication between them and me way back a year ago and was a result of yet another HMRC error that was supposedly fixed!


Tax can be taxing and it really does pay to check..........

Silverbird65

Income
Pension 8240
Pension 1200
Interest 3500
I think I cannot give 1000 allce away?:

Dazed_and_confused

You cannot give £1,000. It is a fixed amount. Which is £1,250 in the current tax year.

You don't say what tax year but if assume it's for the current tax year then the position for you would be,

Taxable income £12,940
Less (reduced) Personal Allowance £11,250

Income to be taxed = £1,690

£1,690 x 0%* = £0

Total tax due = £0.00

*this is the savings starter rate of tax, you don't have sufficient income to be able to use the savings nil rate, commonly known as the Personal Savings Allowance

If you make Gift Aid payments/donations you will have to pay back the tax the charity reclaims.

Silverbird65

Thanks so just to understand as am not savvy. I have no allce to spare . I think savings int could be slightly less. But I would rather not get into a place were I owe tax.
Thanks 😊

Dazed_and_confused

My calculation shows your tax position on the basis that you have applied for Marriage Allowance i.e. your Personal Allowance is only £11,250 not £12,500.

You could have another £4k in interest and still have no tax to pay.

Silverbird65

So I could claim back. I have not put a claim in ever for fear of being tax liable I do not understand it at all. Is it meant too confuse. Lol. Will the hmrc help me out with it all?
Thanks so much

Dazed_and_confused

If you have included details of all your taxable income and it relates to 2019:20 tax year then yes you could apply without it resulting in you getting a tax bill for 2019:20.

But you don't get anything back, it is your spouse who gets a reduction in their tax liability (upto £250 in the current tax year).

You may be able to apply for earlier tax years and your spouse could get several hundred pounds back but you need to look at your income in each tax year to know if it would mean you have some tax to pay.

Silverbird65

May I ask was is savers starter rate!:)