Marriage Allowance

Dazed_and_confused

If you've only paid £12 tax this month hit sounds like you're now being taxed on a special basis to save you paying everything you owe hmrc all in one months wages.

Unless your wages change again expect to pay £12 month for the rest of this tax year and the next year, from April, your tax code will change so you pay off the debt you have built up from April to now.

polymaff

donna1979 wrote: »

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

If I've got it right, you lose about £152 but you husband gains £220 - so you (plural) are better off

TheDeamons

Thanks for this info. I have just followed the link to HMRC and successfully completed my application for his allowance. I have had it confirmed that my husbands tax allowance will increase by £220 per annum and that I will receive a back dated cheque for £212. Following a recent tax demand to my husband for unpaid tax of £154 from last year this allowance completely takes care of that commitment. This must be the easiest and most straightforward way to improve our finances that I have ever come across. Thank you very much

rondavies55

We filled the form online it took a matter of minutes no problem, thanks MSE £220 back dated on its way to us:

4_Pete's_Sake

Dazed_and_confused wrote: »

You must have misunderstood the HMRC because there own guidance is clear in that it is being a higher rate payer which counts, not your income level.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye100060

Are HMRC aware of your pension contributions?

In any case why are you discussing this with HMRC? You, as the higher earner, cannot claim this allowance only the lower earner can apply and you receive the allowance once they have done this - just get your wife to apply

I have not misunderstood the guidance at all and I think you need to read up on the new rules for this year which now state that your gross earnings must be below £43,000 to be able to transfer the MA. Whereas it used to be transferable if you were a Basic Rate Taxpayer. What you have stated is very misleading as these were the old rules. The link you posted was last updated on 26/7/2016 and is out of date. The new rules can be found on the following link which was last updated on 28/10/2016:

https://www.gov.uk/marriage-allowance/how-it-works

I have discussed this with HMRC and they stated that even though my pension contributions bring my taxable pay below £43000 that the MA cannot be transferred to me. When I got this last year I called them about it by phone and they then spoke to my wife who confirmed that she wanted the MA transferred and they did it. BUT NOW THE RULES HAVE CHANGED.

Dazed_and_confused

“
Sorry but you are wrong and if you don't challenge this with HMRC again will be missing out on up to £220. There has not been any change to the tax legislation pertaining to Marriage Allowance and HMRCs own guidance is very clear,

Eligibility criteria
To qualify for the transfer:
you must be married or in a civil partnership when the transferor makes the application to transfer the allowance
your spouse/civil partner is not for the tax year, liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings
neither customer can already have a live Marriage Allowance application on their account at the time of the application
neither customer can be in receipt of Married Couple’s Allowance (MCA)

if your wife applied last year (When I got this last year I called them about it by phone and they then spoke to my wife who confirmed that she wanted the MA transferred and they did it) then from what other posters on here have said it just carries on from one tax year to the next so is it not still included in your current tax code anyway?

wellingutd

In this year, I was paid a large redundancy and even though I was lucky enough to find a replacement job I ended up with a large tax bill. My salary, currently, is over the £42k threshold, BUT it would really help to use my wifes personal allowance who is a stay at home Mum. Can I do this OR are the rules clear that you need to earn under £42k?

xylophone

You received the payment in the current tax year? Are you in a position to make a pension contribution to bring your adjusted net income below the higher rate threshold?

http://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/member-contributions-tax-relief-and-annual-allowance/

4_Pete's_Sake

Dazed_and_confused wrote: »

“
Sorry but you are wrong and if you don't challenge this with HMRC again will be missing out on up to £220. There has not been any change to the tax legislation pertaining to Marriage Allowance and HMRCs own guidance is very clear,

Eligibility criteria
To qualify for the transfer:
you must be married or in a civil partnership when the transferor makes the application to transfer the allowance
your spouse/civil partner is not for the tax year, liable to tax at a rate other than the basic rate, the dividend ordinary rate or the starting rate for savings
neither customer can already have a live Marriage Allowance application on their account at the time of the application
neither customer can be in receipt of Married Couple’s Allowance (MCA)

if your wife applied last year (When I got this last year I called them about it by phone and they then spoke to my wife who confirmed that she wanted the MA transferred and they did it) then from what other posters on here have said it just carries on from one tax year to the next so is it not still included in your current tax code anyway?

I wish you were right but I had a very long conversation on the phone with the Tax Office and the advisor pointed me to their website, which now clearly states that to qualify. "Your partner’s income must be between between £11,001 and £43,000". Read the link https://www.gov.uk/marriage-allowance/how-it-works

We got it the previous year, but due to information the Tax Office received from my current employer on my current wage they changed my tax code and took of the MA.

polymaff

4_Pete's_Sake wrote: »

I wish you were right but I had a very long conversation on the phone with the Tax Office and the advisor pointed me to the website which no clearly states that to qualify. "Your partner’s income must be between between £11,001 and £43,00".

I think that your statement is incorrect - not just because of the missing zero, but because HMRC's definition of being banned from receiving the MAT is the one D+C gives - literally implemented as a test that the taxable income does not overflow the, possibly extended, basic rate band. The upper criterion is not, therefore, a fixed figure, the brb can be extended by qualifying charitable giving and by an entry in box REL1 (Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider (called ‘relief at source’)) in the SA Return.