Marriage Allowance

Consumerist

diceydeb wrote: »

Do benefits count as income like esa as its all taxable now. Dla or pip aren't taxed so this wont count will it?

We all have a Personal Allowance whether we have any income or not. Some benefits are taxable and others are not but they are all regarded as income.

Edit
More info on taxable benefits at <HMRC>.

DaveLanks

Hi. My wife and I have qualified for the transfer of tax allowance, however, there seems to be a catch. I received a letter last October telling me that I must register for tax self-assessment and complete a self assessment before the transfer can be set up.

My wife has her OAP, which is well below 10k/year. My OAP and works pension give me about 20k/year and that's it for the pair of us apart from about £150/year each in share dividends that are taxed at source.

I've browsed the HMRC website until my eyeballs ached, but can't find self-assessment as a condition to receiving this allowance. So I've tried telephoning the number on the letter to ask why I had to self-assess, which would be an annual harrassment for a pensioner. After listening to, and battling through the automated - er, stuff - and discovering which answers moved things along, the conclusion has always been the "We're too busy" message followed by being cut off. I'm sick, sick, sick of the same darned thing every time I phone but still want an answer before committing to self-assessment for the rest of what's left of my life.

I'm so ticked off, a letter was sent to my MP by way of complaint, but have yet to hear from him.

Can anyone offer comment as to why I might have been singled out for this unnecessary rigmarole?

Thanks in advance for answers.

Dave

Consumerist

DaveLanks wrote: »

. . . Can anyone offer comment as to why I might have been singled out for this unnecessary rigmarole?
Thanks in advance for answers.
Dave

I'm no tax expert but I always thought that Self-Assessment was only compulsory for the self-employed.

My advice would be to ignore the letter for the moment and just apply for the Marriage Allowance online again.

I have seen some reports that there were some difficulties in the early days when applicants for MA were required to "register an interest" well in advance of the MA being available.

Recent reports seem to indicate that applications at the moment are going through quickly so just give it a go and see what happens. Good luck.

Edit
It seems possible that it's your share income that is causing the hitch because it isn't captured under PAYE. A little more info from <Tax Rebate Centre> may help your understanding if not your situation.

patanne

Consumerist wrote: »

I'm no tax expert but I always thought that Self-Assessment was only compulsory for the self-employed.

It is also necessary if your state pension tax due is larger than they are able to take from your other income (ie more than 50% of it). It also seems to be a kneejerk reaction to 'I don't know what to do here so I'll tell them to do self assessment as it will get me off the hook'.

Darksparkle

Consumerist wrote: »

I'm no tax expert but I always thought that Self-Assessment was only compulsory for the self-employed.

There are more people than just self employed that meet the SA criteria. Gov have outlined on their site who must register.

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

Darksparkle

DaveLanks wrote: »

Hi. My wife and I have qualified for the transfer of tax allowance, however, there seems to be a catch. I received a letter last October telling me that I must register for tax self-assessment and complete a self assessment before the transfer can be set up.

My wife has her OAP, which is well below 10k/year. My OAP and works pension give me about 20k/year and that's it for the pair of us apart from about £150/year each in share dividends that are taxed at source.

I've browsed the HMRC website until my eyeballs ached, but can't find self-assessment as a condition to receiving this allowance. So I've tried telephoning the number on the letter to ask why I had to self-assess, which would be an annual harrassment for a pensioner. After listening to, and battling through the automated - er, stuff - and discovering which answers moved things along, the conclusion has always been the "We're too busy" message followed by being cut off. I'm sick, sick, sick of the same darned thing every time I phone but still want an answer before committing to self-assessment for the rest of what's left of my life.

I'm so ticked off, a letter was sent to my MP by way of complaint, but have yet to hear from him.

Can anyone offer comment as to why I might have been singled out for this unnecessary rigmarole?

Thanks in advance for answers.

Dave

When people first started applying many were sent a letter stating they had to register for SA. It was mentioned either earlier on this thread or on another. So you haven't been singled out.

I believe there was something on their Twitter page about it but it's a while ago now.

le_loup

Darksparkle wrote: »

When people first started applying many were sent a letter stating they had to register for SA. It was mentioned either earlier on this thread or on another. So you haven't been singled out.

It was a mistake. You were one of many and it can safely be ignored.

4_Pete's_Sake

lakesider52 wrote: »

I am a basic rate taxpayer but ONLY by virtue of "Gift Aid" donations extending my basic rate band. Do I qualify for married couples allowance?

I believe what you mean here is that but for the fact that you have made gift aid donations then you would actually be a higher rate taxpayer.


I too make gift aid contributions and the I.R. take account of this in my annual tax notice. You can also make additional voluntary pension contributions to keep you below going into the higher tax bracket. However assuming that your personal allowance is £10600 then as long as your taxable pay is less than £42385 then you are a basic rate taxpayer. Your gross pay could be considerably higher but it is your taxable pay that counts. So if you were on gross pay of £46000 per annum but paid £3615 into a pension then you are still a Basic Rate Taxpayer.


The I.R. should increase your personal allowance if you advise them of your regular charity donations.

scatz

diceydeb wrote: »

Do benefits count as income like esa as its all taxable now. Dla or pip aren't taxed so this wont count will it?

My wife receives DLA and ESA and has been successful in transferring the allowance to me

Archies_Dad

Many thanks, I took your advice and applied on Gov.UK site receiving the reply "Transfer Successful" and today had an e-mail from HMRC saying they will reduce wife's tax allowance and increase my tax allowance by £1060. Am wondering how long it will be before I get a tax refund? If they are as quick as the notification process, my wife will be spending the refund in a couple of weeks max !!!