Marriage Allowance

1264andy

Hi all,
This may be a silly question but my wife asks me if she can claim the Marriage Tax Allowance. My wife doesn't work as she is retired. Can she claim Marriage Tax Allowance even though she has not worked and therefore not earned anything. She gets a pension which is not the full pension because she hadn't paid enough stamps through her life?
I earn under the threshold and pay 20% tax on my wages.
Regards,
Andy.

Dazed_and_C0nfused

Roughly how much will her total taxable income from all sources be in the tax year she is thinking of applying for

1264andy

Hi thanks for the reply,
She only gets her state pension which is about £2160 per year. No other incomes.
She was hoping to claim from 2015/2016 to present. 
I am not 100% sure but I would think that I get a married mans tax allowance on my wages as well.
Regards,
Andy.

Dazed_and_C0nfused

Then she could apply and she won't have any extra tax to pay.

You will get £250 knocked off whatever tax you have paid.

1264andy

Hi,  Sorry but I do not know much about taxes,
But she doesn't pay any tax anyway, that's why I didn't think she would be able to claim anything.
Did you mean I would pay £250 less tax each year?
thank you

Dazed_and_C0nfused

If your wife applies she will get a reduced Personal Allowance.  But as she has such a low income she won't have to pay any (extra) tax.

Anyone who applies for Marriage Allowance cannot pay less tax by applying.

If your wife applies you will get a tax deduction of £250 off however much tax you would otherwise pay (as a basic rate taxpayer).  As we are at the end of the tax year you wouldn't get a new tax code for 2019:20 but HMRC will refund you any tax overpaid (c£250 if your tax is otherwise correct).

belfix

Just claimed MA but is this correct:- wife tax communication for 2017-18 now states she owes £230 to be paid b4 June 2021, tax communication for 2020-21 had pension increase and now has to pay tax. My communication for 2017-18 states HMRC owes me £229.68, communication for 2018-19 states HMRC owes me £467.83. I have received a cheque for £467.83. My latest coding statement states that transfer of allowance is only £1250 (£125)? My query is why does my wife now owe £230? Confused?

Dazed_and_C0nfused

From what you have posted it sounds like she has applied for a year (2017:18) when you were both eligible but didn't benefit from Marriage Allowance i.e.  your wife's income was high enough that she was paying basic rate tax (which means she is eligible) and as a result of applying you are, as a couple 32p worse off than by not applying (your tax refund is fractionally outweighed by the tax she now owes).

Did your wife check her income position for 2017:18 before applying?  If so and she though she both eligible and you would, as a couple, benefit, what is wrong with the calculation HMRC have sent?

Are you going to pay her tax bill out of your £467?  

sheramber

Marriage Allowance  transfer means that  10% of your wife's personal allowance is transferred to you. So her personal allowance is reduced by 10%.
If the new reduced allowance is less than her taxable income then she will be due to  pay  tax on  the excess.
It would appear that for 2017/18  the reduction in your wife's  personal allowance means she is now due to pay tax of £230  as she has  less personal allowances to set against her income. Your tax payable has been reduced by £229.68. So it is swings and roundabouts.  She loses and you gain but at the end of the day  what you pay as a couple is  the same.
For 2020/21 the transfer is 1250 of her personal allowance to you means your tax  will be reduced by 1250 @20%.
If  your wife's income is greater than her reduced allowance then she will pay  tax while you pay less.

Debunked

Hello all, 
I hope you are all well during this time. I just have a quick querie regarding the ma. My wife sorted it out a while back but didn't realise she was going through a claims company. The page was set up to look like the gov website. They have taken £244.30 of our total amount we were due £640.80, although it does also say we paid tax on the amount we received. I include a photo of the costs. I know this problem has probably been posted before but just needed to know if there is any way we can challenge what has happened? We haven't cashed their cheque yet.
Any advice will be greatly received. 
Kind Regards 
Debunked