Marriage Allowance

Boldhoof

Dazed_and_C0nfused said:

Boldhoof said:

We applied for the Marriage Tax Allowance as my wife has not earned anything in the last 4 years. We did it online just over a week ago and we have since received a cheque from the tax office for £686 on Monday. Today I received 2 letters, one with my new tax code. The other had the allowance taken from my tax code and given to my wife and saying I owed £687. The cheque we received was payable to me as the higher earner as expected. Just confused as to what has happened. We know for defiant that my wife has not earned anything in the last 4 years. I have banked the cheque so if it turns out they want it back its okay as not spent any, just totally confused. 

"We" cannot apply or have received a cheque.

You will find you get more help if you be as clear as possible about exactly what has happened.  Tax is all about the detail and without that it is all guesswork.

Could both of you have applied by mistake?

What exactly are these "letters".  Real letters or tax code notices?  Or tax calculations?

My wife applied for the tax allowance transfer to my name. No we did not both apply that I know for sure, the only claim we did on the HMRC website was for my wife to transfer the allowance to myself. I am at work now till later tonight so will supply better information when I have them again in front of me, was a quick look as I had to leave as the post arrived. 
Thanks

Dazed_and_C0nfused

This seems to be the crucial thing then, exactly what these letters are.

Today I received 2 letters, one with my new tax code. The other had the allowance taken from my tax code and given to my wife and saying I owed £687. 

Boldhoof

Dazed_and_C0nfused said:

This seems to be the crucial thing then, exactly what these letters are.

Today I received 2 letters, one with my new tax code. The other had the allowance taken from my tax code and given to my wife and saying I owed £687. 

Okay here is what I received in the post today:

Tax Code Notice Letter for 6th April 2019 to 5th April 2020 this has the  the transfer of allowance and my tax code now ends in a M. The same letter contained my tax code for 6th April 2020 to 5th April 2020 with the transfer of allowance and tax code ending in a M.

The other letter is a Tax calculation for the year 6th April 2018 to 5th April 2019 and it states I have paid too little tax. I owe HMRC £687.86. Which then also states the following:

Tax Year 2015-16 paid right amount of tax

Tax Year 2016-17 paid right amount of tax

Tax Year 2017-18 paid right amount of tax

Tax Year 2018-19 you paid £687.86 too little tax

Prior to these letters on Monday I received a refund cheque for the amount they say I owe them now. Along with an explanation of how they worked out my refund.

Tax Year 2016-17 you paid £220.45 too much tax

Tax Year 2017-18 you paid £449.86 too much tax

Tax Year 2018-19 you paid £686.13 too much tax

States the figures above are rolled forward each year, so the latest one is your total tax overpayment or underpayent.

Dazed_and_C0nfused

Think you will have to bite the bullet and ask them exactly what has changed between the first set of calculations and the second set.

If you didn't apply then I don't really know what could have happened in such a short space of time to change things so dramatically.

Silverbird65

To be honest I am not sure I want to even bother because it's more than likely problems would arise and we don't need them. The money would be great but at what cost to my mental health. Good luck😅

Boldhoof

Dazed_and_C0nfused said:

Think you will have to bite the bullet and ask them exactly what has changed between the first set of calculations and the second set.

If you didn't apply then I don't really know what could have happened in such a short space of time to change things so dramatically.

So phoned them up to find out why this was the case. Can't fault the person I spoke to at HMRC , he could not see why the system had done this. After a few security questions and checks he had a further look. He tried to make changes but the system would not allow it saying a claim had been made. Further checking he told me to leave it with him and he would call me back on a number I would be available on. Since the number they call from is withheld he asked me to suggest a password. To his credit he did call back and I told him we had had another letter since the original call, with the reduction in my tax code to reclaim the payment they have made over 12 months starting from April. He said that I will receive another code, which will include the extra allowance and my employer will receive the updated code in plenty of time. So all sorted.

Ailson7

Does anyone know if you can put this in for a year where you've been on maternity leave? 

Dazed_and_C0nfused

Ailson7 said:

Does anyone know if you can put this in for a year where you've been on maternity leave? 

Maternity leave has absolutely no relevance as far as Marriage Allowance is concerned.

Which tax year are you referring to and what was your total taxable income in that tax year?

Silverbird65

 tax Yr 1919/20 my pension 0ap was £8350 co Pension £1188 savings int 2700 thats it so would it ok to go for MA? I dont wont to cause any probs with Tax office so am reluctant previous years have been diffeent as paid tax on inteest when iterest ates better of course. Not every year though got a rebte sometimes. I darent ring them and start an avalanche of probs. Just being drawn in to Martins urges to go for it.

thanks for help anyone?

Dazed_and_C0nfused

If you apply for 2019:20 you would make yourself liable on £988 of your taxable income however it would be taxed at 0% (the savings starter rate of tax) so based on what you you have posted your actual tax bill would be £0.00.

If your State Pension isn't paid weekly then presumably you have taken into account that it is paid 4 weekly not monthly.

How much tax does your spouse pay?