Marriage Allowance

unholyangel

Debunked said:

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

If you know the company you dealt with, have you checked their website for terms? That's your starting point. Are they claiming to offer a service? If so, did they comply with the necessary laws (such as CCRs, CRA etc)? 

Tbh these companies tend to be very clever. They typically get you to use a deed of assignment (legally binding even without consideration being provided) and very carefully word it so they are entitled to all repayments, not just those that arise from the claim you ask them to make. Some will also do this for all allowable years (even years you're not entitled to marriage allowance transfer or uniform allowance etc). Of course, they rarely have a proper address & never have a phone number - because they don't want to be bothered by all the people they've purposely misled with their cleverness. 

At the very least, you should contact your local MP to complain about these companies. What else you could do would depend on details. 

fuzzypete

I am 79 year old retired man  ,my wife is divorcing me and we are at thge stage of application for the decree absolute which I expect to get in the very near future. We were married for 27 years and have lived apart for 19 months .
My income is made up by my state pension a private pension of which 50% is awarded to my wife and DLA higher rate benefit  I pay tax of about £120.0 per month.
Would it be possible for me to make a claim for Marriage Allowance for the qualifying years whilst we were married and does my wife (who is being uncooperative) have to be involved in the process.

Dazed_and_C0nfused

You cannot "claim" Marriage Allowance.

The person giving up the allowance, usually the lower earner, has to apply and the other person then receives it (assuming you are both eligible).

fuzzypete

thanks for your answer, does it mean that i cannot get it if unless my wife applies.or does it mean we are not eligible and I cannot get it,  full stop !

Dazed_and_C0nfused

Correct, you cannot get it unless your wife applies.

You sounds like you are eligible (and would benefit) but no idea about your wife without her income details. 

But basically if she isn't a higher rate payer she would be eligible.  If her taxable income is at least 10% less than the Personal Allowance she would be both eligible and could apply without having to pay any tax.

loiner

I’m trying to find out the effect of dividends on Marriage Allowance. The gov.uk website says to ring them, but I can never get through! I would’ve thought the rules were standard and could be published on their website, like their other rules.

So, we’ve never claimed MA, but meet the criteria ie my wife has a small nurse’s pension of less than £5K. I pay basic rate tax. However, we both receive dividends in excess of £10K from my company. This takes my wife above the Personal Allowance threshold, but due to dividends not income. I can’t see a definitive rule if this stops her from using MA. Any help out there?

The way I think it might work is she currently pays 7.5% tax on her dividends, minus the £2K dividend allowance, minus the surplus of her Personal Allowance. Using MA, the surplus would decrease by £1250, so she would pay an extra 7.5% on £1250. I would save paying tax at 20% on the transferred £1250, so still an overall saving.

polymaff

The law of unintended consequences! Those HMRC hate the most - those living primarily off dividends - find, due to HMRC's cack-handed implementation of MAT, themselves to be in the winning situation you describe.

Dazed_and_C0nfused

loiner said:

I’m trying to find out the effect of dividends on Marriage Allowance. The gov.uk website says to ring them, but I can never get through! I would’ve thought the rules were standard and could be published on their website, like their other rules.

So, we’ve never claimed MA, but meet the criteria ie my wife has a small nurse’s pension of less than £5K. I pay basic rate tax. However, we both receive dividends in excess of £10K from my company. This takes my wife above the Personal Allowance threshold, but due to dividends not income. I can’t see a definitive rule if this stops her from using MA. Any help out there?

The way I think it might work is she currently pays 7.5% tax on her dividends, minus the £2K dividend allowance, minus the surplus of her Personal Allowance. Using MA, the surplus would decrease by £1250, so she would pay an extra 7.5% on £1250. I would save paying tax at 20% on the transferred £1250, so still an overall saving.

You are correct in saying this would mean some more of your wife's income would then be taxed, albeit at just 7.5% (£1,250 x 7.5% = £93.75).

But if paying yourself the >£10k dividends pushed you into the higher rate bracket (even if only from the 0% dividend rate) then you wouldn't be eligible to receive the Marriage Allowance tax credit of £250.

loiner

Dazed_and_C0nfused said:

loiner said:

I’m trying to find out the effect of dividends on Marriage Allowance. The gov.uk website says to ring them, but I can never get through! I would’ve thought the rules were standard and could be published on their website, like their other rules.

So, we’ve never claimed MA, but meet the criteria ie my wife has a small nurse’s pension of less than £5K. I pay basic rate tax. However, we both receive dividends in excess of £10K from my company. This takes my wife above the Personal Allowance threshold, but due to dividends not income. I can’t see a definitive rule if this stops her from using MA. Any help out there?

The way I think it might work is she currently pays 7.5% tax on her dividends, minus the £2K dividend allowance, minus the surplus of her Personal Allowance. Using MA, the surplus would decrease by £1250, so she would pay an extra 7.5% on £1250. I would save paying tax at 20% on the transferred £1250, so still an overall saving.

You are correct in saying this would mean some more of your wife's income would then be taxed, albeit at just 7.5% (£1,250 x 7.5% = £93.75).

But if paying yourself the >£10k dividends pushed you into the higher rate bracket (even if only from the 0% dividend rate) then you wouldn't be eligible to receive the Marriage Allowance tax credit of £250.

Thanks for the confirmation. I always make sure I don't go into the higher rate tax bracket.

Ancsa

Debunked said:

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

Debunked said:

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

Hi, I hope you read this and since then you found out something about it. I just got a very similar letter. I claimed for marriage allowance through hmrc, I know that's the official website I always use that, I filled some forms what they sent and it was official hmrc forms. I can recognise it as I claim child tax credit too. I got an answer, in February I get the allowance and again it was official hmrc letter. They said I get cheque in 14 days. I waited but nothing came, I thought because the corona virus they are slower. Than I thought I loose it now they cancel it because of the corona virus or something. Then yesterday  I got a letter very similar to yours and I was really upset. It can't be true. Than I tied in marriage allowance cheque, clicked on images, how should it look like and your images came up.  The biggest disappointment was the letter was dated 20th March or something and says hand it in 30 days from letter dated... So even if I would like to try to get it I can't as it expired.  The amount is exactly the same as hmrc says but they want to take away the half of it. Almost the 900 I am eligible for and they says  they would take off around 400...what a joke. I tried to reach hmrc but at the moment I can't. I m not using the cheque, please if you find out anything I would like to know. If I get the answers first I let you know