Marriage Allowance

Consumerist

Tourer wrote: »

For their 2015/6
Income from pensions etc £4480
Savings Income £6602
Total £11,802
Can I transfer the £1060 allowance to my spouse or not?

From <HMRC> :-

You can get Marriage Allowance if your partner’s income is between £10,601 and £42,385.

i.e. you can transfer the MA if your spouse is a basic-rate taxpayer.

olip74

My wife submitted the application on 10/02 and received an email saying the transfer had been successful. Nothing in Feb's pay packet (18/02). I didn't receive any notification and I checked today with my employer who says they didn't get one either!

HMRC have reissued the notifications but if I don't get it in this month's pay it's the last pay packet of the year and it will be a hassle to get it (presumably they'd have to amend my code for 2016). What a guddle! You'd think there would be an easier way.

donerkebab

olip74 wrote: »

My wife submitted the application on 10/02 and received an email saying the transfer had been successful. Nothing in Feb's pay packet (18/02). I didn't receive any notification and I checked today with my employer who says they didn't get one either!

HMRC have reissued the notifications but if I don't get it in this month's pay it's the last pay packet of the year and it will be a hassle to get it (presumably they'd have to amend my code for 2016). What a guddle! You'd think there would be an easier way.

After phoning as it didnt find my wife's details - I now finally received the new tax codes. I'm in same boat dont think it will show up in my pay before end of Tax year - how do I get it back?

dori2o

donerkebab wrote: »

After phoning as it didnt find my wife's details - I now finally received the new tax codes. I'm in same boat dont think it will show up in my pay before end of Tax year - how do I get it back?

Assuming you are not in Self Assessment (as you will need to show the claim for MA on the tax return) then HMRC will review the 2015-2016 tax year once they have received all expected documents (P60/P11d etc) for each individual and will refund any tax overpaid direct to the individual by cheque. They won't adjust the following years code to make an adjustment for the earlier years MA.

DougJMB

Probably a silly question, but If you were married in July 2016, could you backdate the marriage allowance for the previous tax year (April 2015-16) prior to your marriage?

Consumerist

DougJMB wrote: »

Probably a silly question, but If you were married in July 2016, could you backdate the marriage allowance for the previous tax year (April 2015-16) prior to your marriage?

Not currently.

However, due to the poor uptake of MA this year, MPs are discussing the matter of back-dating to 2015/16 for the next four years. As far as I know, no decision has yet been made. Watch the budget on Wednesday where there might be more announced on this.

Edit
It seems unlikely, however, that you will be able to claim MA for a tax year in which you were not actually married.

adzesc

Hi Guys

Quick question. I applied to transfer to my wife and it was accepted. Looking at her pay for the year she has only earned 11200 so with my allowance transfered to her she will be below the threshold for tax herself. How will this work?

Thanks

Consumerist

adzesc wrote: »

. . . Quick question. I applied to transfer to my wife and it was accepted. Looking at her pay for the year she has only earned 11200 so with my allowance transfered to her she will be below the threshold for tax herself. How will this work?

Since your wife has earned more than £10,600 this year, she would have paid tax on £11,200 - £10,600 (£600) but since you have transferred £1,060 of your allowance to her, she will now not pay any tax.

p00hsticks

Consumerist wrote: »

It would seem that that neither of you will pay tax this year so the MA will have no effect.

The allowance will be applied automatically next year so check that it will be of some advantage to you.

Either of you can ask HMRC to cancel the allowance but you've not lost anything this year - you just haven't gained anything.

Surely you are mistaken ? I reckon there HAS been a benefit.

With earnings of £11,200, the only reason that the wife is not paying tax is because she has her husbands MA allowance. If she only had the standard allowance of £10,600 she's have ended up paying tax on £600 over the year.

So she's saved paying £120 in tax by having the allowance

Consumerist

p00hsticks wrote: »

Surely you are mistaken ?

Quite right. I mis-read the question but have since re-posted.

It's good that people's replies are checked by others. Thanks.