Marriage Allowance

stardust16

xylophone post #607 -
If we are all confused and uncertain now I don't think introducing Mr Stardust into the discussion will further clarity. Believe me! We've been married for enough years for me to have learned that would not be a good idea. But thanks for the suggestion!

xylophone post #608 -
I agree that teddysmum's quote from the HMRC clerk seems to be the key to understanding the HMRC calculations. It would explain how the computer generated P800 arrived at £212 to be paid.

However -
1. It is at variance with mse Sam's previously quoted article on MAT eligibility when savings interest of OVER £5000 is involved.
2. HMRC have confirmed (as in my original post # 537) that I am a non-taxpayer for 2015-2016.

Having established, as best we can, the rules for MAT elibility, to me it now seems to boil down to the question:

Is the fact that the application system (by which I assume means computer program) has 'no facility to split the interest so that the excess combines with the non-savings income' (as is the case with the calculation of tax liability on savings interest over £5000) in keeping with the interpretation of the legislation on rules for MAT eligibility?

Does the legislation expressly state that excess over £5000 cannot be combined with non-savings income? Or has the 'facility' been overlooked in the program design?

P S Whilst writing the above I got logged out again and your latest reply came in #611.
Thank you for the advice. Yes, if I cannot find an answer to my questions above before my payment deadline, I will have to pay.

Thank you for all the posts and help in trying to get my head round how MAT works.

xylophone

Please let us know the answer when you get it!

stardust16

Dazed and confused - post # 605
Thank you for the link. Yes, it does seem to confirm that HMRC's 'system' on MAT has had some problems. That might give some justification for my unresolved questions in my post #512.

jimmo - post #600
Thank you for your post on the legislation. Yes, that is what I really do need to be sure of. But, I am afraid you have lost me! Sorry!
See my unresolved questions in my post #512 as mentioned above.

polymaff

@stardust.

Has Married Couple's Allowance ever come up in your dealings with HMRC? If somehow they have got hold of the wrong end of the stick, HMRC will cancel your application for MAT - and this might be the item for £212 of which you wrote "except the £212 tax liability itemised separately, which obviously is the amount of MA transferred to my husband".

If the p800 gives an explanation of the £212, could you post it? It probably doesn't - as otherwise you wouldn't have used the word "obviously". On the other hand, "obviously" and HMRC? Don't rely on that being so.

Are there any "Non-Resident" aspects of your and/or your husband's tax affairs?

I'd recommend paying the money. If it turns out to be an HMRC error you'll get it back - with interest, I believe. Keep that stress down.

jimmo

stardust16 wrote: »

jimmo - post #600
Thank you for your post on the legislation. Yes, that is what I really do need to be sure of. But, I am afraid you have lost me! Sorry!

I was afraid someone would say that but the basic problem, as I see it, is that you think your are entitled to MAT but HMRC have turned you down.
There is no clear answer on here so when you next confront HMRC it will be you against whoever you speak to.
In confronting HMRC you can’t, realistically, quote from a forum, journalist or even an ex Chancellor. Their opinions count for nothing. The only thing that really matters is the law.
You then have 2 choices:
1) Take up the fight yourself, in which case you will really need to understand what the law says. That can be difficult enough for those of us who have worked in taxation but definitely not impossible for anybody else.
2) Seek professional advice or representation.
I can’t imagine that paying a professional to argue your case with HMRC for you would be cost effective but TaxAid could be worth looking into.
http://taxaid.org.uk/

polymaff

stardust16 wrote: »

...HMRC have given me only a few more days in which to pay them the £212 back

@Stardust

So it is a refusal of the MAT.

Do you mind telling us your Husband's:

Gross Non-Savings Taxable Income
Gross Savings Taxable Income
Net Dividend Income

Any other taxable income?

stardust16

Just noticed that in my post #614 I referred twice to my post # 512, which should of course been #612. Sorry if that caused even more confusion.

The question I was referring to in #612 does seem to be the key:
'Is the fact that the application system (by which I assume means computer program) has 'no facility to split the interest so that the excess combines with the non-savings income' (as is the case with the calculation of tax liability on savings interest over £5000) in keeping with the interpretation of the legislation on rules for MAT eligibility?

Does the legislation expressly state that excess over £5000 cannot be combined with non-savings income? Or has the 'facility' been overlooked in the program design?'

(Yes, I realise that is three questions!) However, having gained confidence from all the help and information given to me on the forum, I have persevered with these three questions to HMRC. After some delay and considerable persistence, my case details were passed on up the line to other departments and I have had a resolution!

HMRC agrees that in my case all the eligibility criteria are met for transfer of MAT. However, they admit that they are now aware that 'part of the script that does the calculation for savings interest in excess of £5000 is missing. It should have been there. The computer system will be amended but no time scale can be given.'

Phew! Big sigh of relief! Many thanks indeed to all on the forum who helped me to have this resolved. And mse Sam was correct in his article at the head of this forum on MAT eligibility and over £5000 savings interest. The problem was that the HMRC computer system had not been programmed to implement it.

In case anyone else is in the same situation I will also pass on that, until the computer program is amended, demands will continue to be sent out with the £212 as a tax liability to be paid. I have been told that I will probably receive several more requests for this payment but I can ignore them as they are now aware of the error and the £212 will be deleted once the amendments are in place.

I am very grateful to everyone who took an interest and devoted time and effort to help me have this resolved. I apologise I never did work out how to post/quote/thank on the forum page properly but please accept my sincere thanks here. I hope this will help others in the same situation and save them a lot of time and concern.

Consumerist

Glad you got it sorted and for the feedback for the benefit of others in the same boat.

When logged-in, the blue [Thanks] and

buttons are at the bottom of each post. Hit the appropriate button to thank or quote a post.

SandLake

Consider myself to be retired but not yet in receipt of any pension. I have applied for and been granted the MA. Due to unforeseen circumstances I have taken some cash from a pension which is going to push my income over £9900 for this year (by a few hundred).

How does this affect the MA? Will I simply pay 20% on earnings over £9900? Can I just leave it until the 5th April when I will know the final amounts and deal with it all then.

Dazed_and_confused

SandLake

Unless you become a higher rate payer (£43000+ income) it doesn't affect MA.

Yes, if your pension/earnings go over £9900 (and are less than £43000) then you will have to pay tax at 20% on income over the £9900.

If you get regular payments from the pension then it should be sorted during the year but if it was a single payment then expect to either have extra tax to pay after the end of the tax year or if too much tax was deducted from the one off payment it will be sorted out when your tax refund is dealt with.

Do you have other income such as savings interest?