Marriage Allowance

Mummytoted

Hi,

Does anyone know roughly how long after applying we will receive the cheque for last years allowance?

We applied about 6 weeks ago but as of yet havent received the cheque. If this is quite normal, I won't chase it yet, but if not I'll get on the phone!

Thanks so much

Dazed_and_confused

What's all the "we"

Only the lower earner can apply, is that you or your spouse?

Which tax year(s) did you apply for and if 2016:17 was one of them have you or spouse received a new tax code for the current tax year yet?

If you applied for last year do either of you complete self assessment tax returns?

donna1979

I applied for the allowance to be transferred to my husband as I earn a bit less than £11000 a year. I wasn't sure how much difference it would make but from Martin's last article I thought it was worth doing. Got paid today and my code has gone from the 1100L and not paying any tax to 990N to paying £12! Asked a few other staff to discover I've had a 10 years service payrise in April so I now earn £11,280 a year! My husband hasn't had a pay through yet but has had a letter saying his code is now 1210M. Any advice about what to do please?

[Deleted User]

donna1979 wrote: »

I applied for the allowance to be transferred to my husband as I earn a bit less than £11000 a year. I wasn't sure how much difference it would make but from Martin's last article I thought it was worth doing. Got paid today and my code has gone from the 1100L and not paying any tax to 990N to paying £12! Asked a few other staff to discover I've had a 10 years service payrise in April so I now earn £11,280 a year! My husband hasn't had a pay through yet but has had a letter saying his code is now 1210M. Any advice about what to do please?

Over 12 months I would have expected you to be paying about £23 per month tax, so if you end up paying £12 per month up until April, sounds about right to me.

Consumerist

donna1979 wrote: »

. . . Any advice about what to do please?

If your income has risen above £11,000 then, as a couple you won't lose anything but, individually, you will lose £212 in extra tax over the year and you husband will receive it instead.

Either of you, I think, can ask HMRC to cancel the MA if you want to.

polymaff

donna1979 wrote: »

I applied for the allowance to be transferred to my husband as I earn a bit less than £11000 a year. I wasn't sure how much difference it would make but from Martin's last article I thought it was worth doing. Got paid today and my code has gone from the 1100L and not paying any tax to 990N to paying £12! Asked a few other staff to discover I've had a 10 years service payrise in April so I now earn £11,280 a year! My husband hasn't had a pay through yet but has had a letter saying his code is now 1210M. Any advice about what to do please?

Nothing. Based upon the data you've supplied, at the end of the tax year, your liability to income tax will be £276, which will be £220 more than if you hadn't applied for MAT. Your husband will end the year owing £220 less than if you hadn't applied for MAT.

donna1979

Thanks. It's worried me in general since I haven't paid any tax since April so believed I was under the £11000 limit! When having a look my monthly pay is £940 but from that is my pension and NI so have been taking home £856 a month.

Consumerist

donna1979 wrote: »

Thanks. It's worried me in general since I haven't paid any tax since April so believed I was under the £11000 limit! When having a look my monthly pay is £940 but from that is my pension and NI so have been taking home £856 a month.

If your pay increased during the year, it is still possible that you won't hit the £11,000 limit by the end of the tax year. So you may still get something out of MA between you. It just may not be the full £220 you would save if your income was below £9,900.

polymaff

polymaff wrote: »

Nothing. Based upon the data you've supplied, at the end of the tax year, your liability to income tax will be £276, which will be £220 more than if you hadn't applied for MAT. Your husband will end the year owing £220 less than if you hadn't applied for MAT.

donna1979 wrote: »

Thanks. It's worried me in general since I haven't paid any tax since April so believed I was under the £11000 limit! When having a look my monthly pay is £940 but from that is my pension and NI so have been taking home £856 a month.

More data changes things!

You were not paying tax because your pension contributions bring you back down below the standard, £11,000, Personal Allowance.

Your taxable annual income is about £10,660 which is below £11,000 - so no tax - but above £9,900 (your 990N tax code) so, after MAT, taxable.

It is actually £760 above, and so you are being asked to pay 20% of that, i.e. £152 per annum - about £12 per month.

All of the above subject to my errors/guesswork.

donna1979

polymaff wrote: »

More data changes things!

You were not paying tax because your pension contributions bring you back down below Personal Allowance.

Your taxable annual income is about £10,660 which is below £11,000 - so no tax - but above £9,900 (your 990N tax code) so, after MAT, taxable.

It is actually £760 above, and so you are being asked to pay 20% of that, i.e. £152 per annum - about £12 per month.

All of the above subject to my errors/guesswork and to other things you haven't disclosed - like the pension contribution which I've guessed to be 5.5%.

Thank you! Wasn't sure how my pension fitted into it! So essentially we will be no better or worse off?