Marriage Allowance

Consumerist

johncr wrote: »

Am I missing something, seems that the online self assessent only asks if u want to transfer the allowance to your spouse; doesn't ask if you want to claim the allowance from your spouse . She had applied for 2015-2016, and I received an udated tax code for 2015-2016 (and for 2016 - 2017) on March 23, too late for my March payslip. Not obvious how I will receive the £212, I expected to be able to include it in my self assessment.

Only the donating party (non-taxpayer) can claim the allowance.

It will be used to offset any unpaid tax liability for 2015/16 or else you will probably get a cheque.

Pringleton

Hi, found it on the gov.uk site (sorry, as a newbie I can't post the link)

artie13

Inland Revenue website says must be living together for married couples allowance,
not marriage tax allowance.

Consumerist

artie13 wrote: »

Inland Revenue website says must be living together for married couples allowance,
not marriage tax allowance.

Thanks artie, you pipped me to the post (no pun intended).

Kevi

My wife and I jointly own a flat we rent out. We have always split the income (and expenses) in our SA returns. If this year I alone declare the full rental income (and expenses), my wife's income will drop below the threshold and she could transfer her MTA to me. I will still be a basic rate taxpayer. Can we change how we declare our incomes to benefit in this way? We do not appear to fit into the partnership rule and it's not a rental business. Any thoughts here?

artie13

Hi Consumerist,and Pringleton,

just checked with HMRC, eligible to claim if living apart.

:beer::j:T

pafpcg

Brighty wrote: »

I've just had a first stab at my tax return, and there's a question on there about whether i want to tranfer allowance to my spouse.

The question is there for everyone, even if, like myself, HMRC have already modified tax codes (last August and have already issued the 2016/17 tax codes) to allocate the spouse's Marriage Allowance. It seems that if the donating spouse requests the transfer in the Self-Assessment process, the tax calculator will deduct the £1060 from the Personal Allowance and correctly calculate the tax over/underpaid for 2015/16, but when the spouse who is benefitting from the transfer does his/her calculation, the Self-Assessment system is completely unaware of the increased allowance! I guess I'll have to wait for the HMRC's Self-Assessment computer system to recognise my partner's donation and to "credit" my allowances, so I can't submit my tax return yet. I wonder how long that will take.....

pafpcg

Kevi wrote: »

My wife and I jointly own a flat we rent out. We have always split the income (and expenses) in our SA returns. Can we change how we declare our incomes to benefit in this way?

Yes, but only if you can justify it to HMRC, otherwise HMRC defaults to a 50:50 split. There's a HMRC form (Form 17: Declaration of beneficial interests in joint property and income) which you can send to register. But there are time limits and if you've been splitting the income equally for several years how would you justify making a change now? There's expert discussion on what's possible elsewhere on the MSE forum (search for "Form17").

Kaz17

Hi. We've already claimed the £212 allowance, are we eligible to claim the new one?:)

Rob_Parker_2

Based upon the figures given for tax year 2015/16 then the lower earning spouse may end up owing and paying tax under this scheme!

My wife earns £9910 and pays no tax. She transfers 10% of her allowance to me and ends up with an allowance of £9540 for 2015/16 and £9900 for 2016/17.

As a result, her personal allowance for 2015/16 is short by £470 and she now owes £91 in back tax which is going to be taken from her @£6 per month for the next year! Check Note 3 on the back of your Notice of Coding to see if you now owe tax.

Be careful what you wish for!