Marriage Allowance

ash_kalyan

My wife recently applied for the Tax Allowance so I could receive tax reduction or rebate. She is the lower earner. She recieves under 12k pa wages. I received a cheque for around £400 for marriage Allowance. HMRC have now written to my wife saying they have recalculated her tax paid for the last 2 years and now she owes just over £300??  Is this because I have recieved the marriage Allowance?
Any advice please?

polymaff

Not necessarily, but as your wife's Personal Allowance will have decreased by £1250 you can see that she may now owe some tax. HMRC often bundle adjustments together, so only you will know the breakdown of the tax charged. As £1250 @ 20% is only £250 there must be more to this than meets the eye.

sheramber

 now written to my wife saying they have recalculated her tax paid for the last 2 years 
two years under paid?

Dazed_and_C0nfused

Presumably the wife either didn't understand the consequences of what she was doing or didn't bother checking.

Having wages "under 12k" could easily mean she has made herself liable to tax in both 2018:19 and 2019:20.

As a couple though it was still worth doing as they are around £100 better off.

Kamouraskan

Has anyone else been sent packing when applying for the Marriage Allowance?

After watching Martin in March and realising we qualified for the Marriage Allowance, we applied and on April 2nd received a confirmation email from HMRC. My income for the years 2017 to date were all under £8,000 and we hoped for a rebate for those years. After 4 month's silence, we called HMRC, and after several hours and attempts at discouragement we finally spoke to a human being, who told us that despite working for a large corp, my wife had underpayed her taxes, and by coincidence, the marriage allowance had covered the difference So we owed nothing, and would receive nothing. We will check her stubs and her code, but I found the whole thing a bit fishy. I have to wonder if anyone else has had a similar experience?

Micksbarrylondon

I think i have been scammed.  I filled in forms that looked like they were from HMRC, i then received an email again made to look like it was from HMRC saying thank you for my application and a cheque would be sent to my husband as the tax payer.  we have never received any such cheques and HMRC say they have paid out, it turns out I completed forms that meant I sign over a percentage of the cheques to a company called Marriage Allowance Ltd.  They have never sent our payout or contacted me since their emails are fraudulently posing as HMRC (HMRC said they would not send such an email) and now I cannot reach them on the phone.  Does anyone know how I can get our money back?

sheramber

When did HMRC  send the money to the company? You will not recover the percentage they take for handling your claim but you should get the balance.
https://www.marriageallowanceclaims.org.uk/contact/

Jeremy535897

Why wouldn't you, if you have to complete the return anyway?

polymaff

waverider15 said:

Hi, Does anybody know, once Marriage Allowance is already set up and running, and you're still eligible, do you need to keep filling the 'Marriage Allowance' section in on your Tax Returns EVERY year in subsequent years if you are the person who transfers their allowance?

"Your Personal Allowance will transfer automatically to your partner every year until you cancel Marriage Allowance - for example if your income changes or your relationship ends."

https://www.gov.uk/marriage-allowance

polymaff

waverider15 said:

polymaff said:

waverider15 said:

Hi, Does anybody know, once Marriage Allowance is already set up and running, and you're still eligible, do you need to keep filling the 'Marriage Allowance' section in on your Tax Returns EVERY year in subsequent years if you are the person who transfers their allowance?

"Your Personal Allowance will transfer automatically to your partner every year until you cancel Marriage Allowance - for example if your income changes or your relationship ends."

https://www.gov.uk/marriage-allowance

Thanks - my question is really on the paper and online tax return form as the wording is not clear, do you have to input the information every year (as once Marriage Allowance is already set up & running it is supposed to continue until you cancel it) fine on the paper return form just fill it in anyway, no loss. However, on the online form it throws an error up if you (the person transferring their allowance) try to fill in the Marriage Allowance section, even if still eligible & filled in correctly, but it's already up and running, and makes you delete the section, again wording not clear perhaps you only need to complete the Marriage Allowance section of the online tax return if you are transferring the allowance to your partner for the 'first time' only? Any ideas or anybody have the same issue?

From the legislation:
55E Limitation on number of tax reductions and elections

(1)An individual is not entitled to more than one tax reduction under section 55B for a tax year (regardless of whether the individual is a party to more than one marriage or civil partnership in the tax year).

https://www.legislation.gov.uk/ukpga/2014/26/section/11

Are you convinced yet ?