Marriage Allowance

Tayloj

Just submitted my Self Assessment tax return, my PAYE code is 1166M as I have used the extra marriage allowance, unfortunately HMRC's online calculation fails to take this into account & just uses the default personal tax allowance of £10,600.

It therefore says I owe then tax whereas they actually owe me tax.

First of all told it would fix itself in 72 hours (didn't), now told either a fix of further guidance by 13th May.

You would have thought that HMRC would have tested their systems to ensure it used the correct tax free allowance!

polymaff

Tayloj wrote: »

Just submitted my Self Assessment tax return, my PAYE code is 1166M as I have used the extra marriage allowance, unfortunately HMRC's online calculation fails to take this into account & just uses the default personal tax allowance of £10,600.

It therefore says I owe then tax whereas they actually owe me tax.

I suspect that you've misunderstood the MAT. Could you post some data highlighting how you expected being an MAT recipient would alter your taxation - and what differences it actually made?

One specific area which has got just about everyone confused - you too, maybe - is about PAYE tax codes and tax allowances. Firstly, the 1166 PAYE code has no effect whatsoever on your assessment. It is purely part of how HMRC expect PAYE to collect tax. Secondly, being a recipient of MAT does not alter how you are assessed for tax either. There are no changes to allowances at all as a result of receiving an MAT. The only difference will be that you will receive a tax rebate of 20% of the MAT on the liability assessed, and this will show, ONLY, in the SA302.

Tayloj

polymaff wrote: »

I suspect that you've misunderstood the MAT. Could you post some data highlighting how you expected being an MAT recipient would alter your taxation - and what differences it actually made?

One specific area which has got just about everyone confused - you too, maybe - is about PAYE tax codes and tax allowances. Firstly, the 1166 PAYE code has no effect whatsoever on your assessment. It is purely part of how HMRC expect PAYE to collect tax. Secondly, being a recipient of MAT does not alter how you are assessed for tax either. There are no changes to allowances at all as a result of receiving an MAT. The only difference will be that you will receive a tax rebate of 20% of the MAT on the liability assessed, and this will show, ONLY, in the SA302.

I don't think you understand MAT of PAYE/Tax for that matter.

A PAYE tax code of 1166M means you have a personal tax free allowance of £11,660 rather than the standard £10,600. This is shown on my HMRC account. The correct tax has been paid by me thru the PAYE system, my SA should match but they didn't use the correct personal tax allowance on online their calculation.

Even HMRC admit it's a mistake on their system & a fix is expected on 13 May.

I will save £212 in tax for 2015/16, once HMRC fix their system!

polymaff

Tayloj wrote: »

A PAYE tax code of 1166M means you have a personal tax free allowance of £11,660 rather than the standard £10,600.

Just not so, Tayloj.

woodyt

Hi
I'm planning on phoning HMRC as I am pretty sure we qualify for this.
Can anybody confirm whether you can request for the amount due to be paid by cheque?
I don't really want to quote what it says on the MSE site unless people have actually received a cheque.
Many thanks.

sheramber

woodyt wrote: »

Hi
I'm planning on phoning HMRC as I am pretty sure we qualify for this.
Can anybody confirm whether you can request for the amount due to be paid by cheque?
I don't really want to quote what it says on the MSE site unless people have actually received a cheque.
Many thanks.

If you are eligible for the allowance for 2015/16 and have not claimed it then any overpayment for 2015/16 will be issued as a lump sum.

The transfer for 2016/17 will be operated by an increase in the code number of the person receiving the allowance and the tax paid will be reduced on a monthly basis.

You will not get a lump sum now for 2016/17,

fd1972uk

Darksparkle wrote: »

If the tax code has been issued to her and her employer then it's up to the employer to correct it. How long that takes will depend on them.

Seems this is the case. They said they sent the notification on 21st April. However I would have assumed my wife would have received a notification, but she hasn't???

She's paid weekly, I contacted them at the beginning of April, it took them 2 weeks to change the code supposedly and now seemingly her company has held onto the tax code change for nearly 3 weeks?

I'm pretty sure that there won't be any such thing with her company and then god knows what we can do then, as the HMRC would therefore be spouting any crap they want to!


FD

fd1972uk

As I thought, her company has received nowt, and I can see that being the case as my wife hasn't had any confirmation either before or after both tax changes relating to the marriage allowance.

Blame definitely lies with HMRC, only worrying thing is after being on the phone for god knows how long, they just confirmed that it had been changed, but it now appears no-one has been notified with the exception of HMRC saying it should be this or that.

If I remember right her tax code was 1053L? Wondering why it isn't 1100L like everyone else, not that she received any other benefits? No Health Plan or any such thing, just the new pension sign up scheme, but assume you don't pay further tax because of this?

katy54

I phoned re marraige allowance about 6 weeks ago and was assured that I would get a cheque for last years and would get a new tax number -is this wait usual then Reading some of the previous posts it appears so

euronorris

Hi All


Just wondering what the standard wait time is for the backdated payment cheque (£212 for 2015/16 tax year)?


DH called and did the necessary in early April (as he's the SAHP) I think it was, and my tax code for 2016/17 was updated very quickly, but we are still waiting on the backdated cheque. And yes, my new tax code only covers the increase in allowance for this tax year, not both.


Thanks.