Marriage Allowance

stardust16

Thank you for all your responses and help on my situation. I am indeed grateful and apologise I have not responded sooner but I have been very ill for the past few days.

Dazed and Confused - I already had requested a second P800 from HMRC and I agree with all the figures - except the £212 tax liability itemised separately, which obviously is the amount of MA transferred to my husband. Two years ago I was told by HMRC that I no longer fulfilled the criteria to submit a self assessment tax return so I would be sent a P800 each year. The P800 does not itemise 'How I have worked out your Income Tax' as used to be shown on the previously received 'Self Assessment: Tax Calculation' and I was unable to receive an explanation on any of my phone calls to them. I am not well enough to phone them again at the moment. The second P800 was followed next day by a letter asking for payment of Unpaid Income Tax within a very short time.

As I am unfamiliar with this (or any) forum can you help to direct me to the posts in other threads which you mentioned previously? I have searched unsuccessfully but am not sure where I should be looking. (I did reply to you on this when you first mentioned it but I did something wrong in submitting the post and it did not appear. Sorry.)

Teddysmum - post #594- referring to your successful call to HMRC you say:
'He explained that the application system will allow only up to £5000 of savings interest in the calculations, as it has no facility to split the interest so that the excess combine with the non-savings income. (The prospective donor would still pay no tax , but would be ineligible for MAT.)'
That would explain 'the application system' not having 'the facility' but should it not be programmed to have this facility IF that is what is intended under the legislation? Back to the rules for eligibliity to transfer.

Thank you everyone for their responses.

xylophone

Total Income £13,752 (why did you have £11752 here?)

Sorry - error - have deleted as you have quoted in full.

xylophone

On corrected figures and assumption re excess of 0% savings ( but I have to say I now feel as though my mind is going round in circles:eek:)

Pensions £8285
Savings £5467 (this is greater than £5000 0% Savings Band so whole personal allowance of £10,600 is used against total).

Total Income £13,752.

Deduct £10,600

£3152 of 0% savings band band available.


£13,752 - £9540 (the reduced personal allowance) = £4,212

£4,212 - £3,152 (0% savings band available) = £1060

Tax due @ 20% on £1060 = £212 which is the amount HMRC say Stardust owes - in fact, it amounts to her husband giving her back the £212 for her to return to HMRC?

Using the assumption, the result is the same - perhaps jimmo can comment?

Otherwise, stardust should write to HMRC and obtain a full explanation and calculation.

I certainly had to do this in respect of a trust calculation- see post 579

Dazed_and_confused

Stardust16 - look at posts on page 2 of this thread (I know you're not doing self assessment but it seems something has changed for marriage allowance on HMRCs end)

https://forums.moneysavingexpert.com/discussion/5443240

Dazed_and_confused

zylophone, I don't understand your calculation, what is this part all about?

£13,752 - £9540 (the reduced personal allowance) = £4,212

£4,212 - £3,152 (0% savings band available) = £1060

Tax due @ 20% on £1060 = £212 which is the amount HMRC say Stardust owes - in fact, it amounts to her husband giving her back the £212 for her to return to HMRC?

Surely all of the savings rate band is available as some of the savings income is accounted for by the unused personal allowance (pension income only being 8285)

xylophone

Surely all of the savings rate band is available as some of the savings income is accounted for by the unused personal allowance (pension income only being 8285)

My figures rest on the assumption (and only an assumption, I really don't know) that because the savings income was greater than £5000, the whole personal allowance was set against the total income for the year.

As I say, I could be completely wrong - I have just been trying to work out how the £212 repayment could have arisen.

As I say, perhaps jimmo can comment.

I note that stardust is not at all well at the moment - I wonder would it be possible for her husband to speak to HMRC on her behalf (with her permission), explain that the repayment is disputed and ask if she (or he on her behalf) should complete a SA for the year 2015-16 so that the whole matter can be looked at again and any error rectified?

xylophone

because the savings income was greater than £5000,

Just to add that the reason I have made the assumption is that the clerk at HMRC indicated to teddysmum that this can be the fly in the ointment when it comes to MA.

He explained that the application system will allow only up to £5000 of savings interest in the calculations, as it has no facility to split the interest so that the excess combine with the non-savings income. (The prospective donor would still pay no tax , but would be ineligible for MAT.)

But in view of the confusion and uncertainty, stardust/Mr stardust could proceed as suggested above to get a definitive answer/ calculation in writing?

stardust16

xylophone -

1. During one of my lengthy calls to HMRC when I was becoming very stressed trying to find out how their P800 calculation had been reached, I did ask if I could write in and request a written explanation. I was told that their response time was several months and I would be well out of time to meet the HMRC payment deadline.

2. You say:
'Savings £5467 (this is greater than £5000 0% Savings Band so whole personal allowance of £10,600 is used against total).
Why?
(Sorry, I have not yet discovered how to pick up quotes from previous posts on the forum.)

stardust16

Your replies and mine seemed to have crossed as I have not yet worked out how to post repies and end up doing a word doc. and pasting it! by which time I am usually logged out of the forum(!).
I have pleaded with HMRC that I should continue to do a Self Assessment Tax Return as the first P800 each year is always going to be wrong as it is based on last year;s figures and interest rate variations will always make the figures wrong. They say I do not meet the criteria. In my second p800 this year the figures used are all correct now - except for the £212 MAT.

xylophone

I did ask if I could write in and request a written explanation. I was told that their response time was several months and I would be well out of time to meet the HMRC payment deadline.

Hmm....

Last December, I received an income tax calculation from HMRC with which I did not agree.

Rather than battle it out on the phone, I wrote to HMRC, sending the letter "signed for".

I had a written reply within six weeks.

And as I said before, many years ago when I had to deal with a Trust, I wrote a letter detailing my queries and after some weeks received a reply from a Trust specialist.

It is quite obvious that you are finding this quite exhausting.

Would you consider paying the tax bill (mercifully not a huge sum) and then sending your letter requesting an explanation and repayment if appropriate?

Even if you have to wait several months, it relieves you of the worry of missing a deadline (with possible penalty payments as a result) and you have the consolation of knowing that it will eventually be sorted out?