Marriage Allowance

the_silver_shade

That's what's so annoying, the MA is presented as being similar and in addition to to the Personal Allowance when it isn't really. It reduces the 'width' of your 20% tax band in the way that the various personal allowances don't. But there's nothing to make that clear on the HMRC site, meaning lots of people in my position have been making decisions based on bad information and are now facing tax bills that they would never have had if this confusing piece of legislation hadn't bern brought in.

Don't get me wrong, it's great for those who benefit, but if they retrospectively take it away from you, it would only be fair to allow you to retrospectively make the decision you would have made without it, ie shelter the money in a pension or whatever. If I'd never heard about this thing I would have been better off overall.

dori2o

the_silver_shade wrote: »

That's what's so annoying, the MA is presented as being similar and in addition to to the Personal Allowance when it isn't really. It reduces the 'width' of your 20% tax band in the way that the various personal allowances don't. But there's nothing to make that clear on the HMRC site, meaning lots of people in my position have been making decisions based on bad information and are now facing tax bills that they would never have had if this confusing piece of legislation hadn't bern brought in.

Don't get me wrong, it's great for those who benefit, but if they retrospectively take it away from you, it would only be fair to allow you to retrospectively make the decision you would have made without it, ie shelter the money in a pension or whatever. If I'd never heard about this thing I would have been better off overall.

Either you didnt read or.misread the website when first applying for the transfer.

It clearly states that if you are a higher rate taxpayer before the transfer of allowances is given then you are not entitled to the transfer.

From the website

Who can apply
You can get Marriage Allowance if all the following apply:

you’re married or in a civil partnership
you don’t earn anything or your income is under £11,000
your partner’s income is between £11,001 and £43,000

It says nothing about the transfer being added to the personal allowance.

To me its pretty clear that before making the transfer you should meet the above criteria.

polymaff

The problem is misunderstanding. Misunderstanding of the legislation - and of the implementation of it - by HMRC results in fundamentally incorrect simplification of the process for presentation to "Joe Public". Then the media and their "experts" corrupt the matter even further - either by directly passing on HMRC's "simplified" nonsense or, worse, further simplifying - i.e. corrupting - the issue even more

A good example of this was a recent issue of "Money Box" when, complete with an expert interviewee, they stumbled badly over MAT.

Good guide for HMRC and the media: When you simplify something make VERY sure that the simplification is the truth, the whole trutth and nothing but the truth.

the_silver_shade

dori2o wrote: »

Either you didnt read or.misread the website when first applying for the transfer.

It clearly states that if you are a higher rate taxpayer before the transfer of allowances is given then you are not entitled to the transfer.

From the website

Who can apply
You can get Marriage Allowance if all the following apply:

you’re married or in a civil partnership
you don’t earn anything or your income is under £11,000
your partner’s income is between £11,001 and £43,000

It says nothing about the transfer being added to the personal allowance.

To me its pretty clear that before making the transfer you should meet the above criteria.

Actually I did qualify under the above rules as I explained above as I was earning under the limit when I applied.

Also, having checked the mail I got on the award of the MA, it very clearly states that I could earn the £11,660 tax free and then the full Personal Allowance on top of that at 20% - not reduced by £1160.

So, not a misunderstanding by me. An invite by them in black and white to earn an additional £1160 before the 40% rate cut in. So I did (partially), following their explicit guidance, and am now being punished for their failure to send out the correct info on their letters. Which will be the basis of the appeal.

bamgbost

Im a little confused with the MA thing.
I applied in the first year. 15/16 and was given it to my tax allowance and tax code reflected it.


However in the current tax year I have a standard L code. No letter or anything to explain why I no longer have it.


I just left it and thought I'd see how the financial year goes, and reclaim / backdate it in the new 17/18 tax year if need be.

alewin

Alan_Williams wrote: »

Hi out there, does anyone know if my wife who is from New Zealand, has an indefinite leave to stay visa in the UK, holds a NI number can apply for this as she does not work, I do and receive less than £15k per annum and I am a UK citizen. Thank you.

I would like to know the answer to this as well.
My wife does not have indefinite leave yet but has a NI number and is allowed to work, although doesn't. Wonder if I can transfer 10% of her tax allowance to me.
May have to ring HMRC on Monday.

DINGDONG

I am not a taxpayer so I completed the online tax form & my husband has received his new tax codes for 2016/17 & 2017/18. The only thing is that as yet he has not received his cheque for 2015 which I believe was automatic if he was eligible for the tax transfer allowance. I completed the online forms in January. Am I being too impatient with HMRC ?

Consumerist

DINGDONG wrote: »

I am not a taxpayer so I completed the online tax form & my husband has received his new tax codes for 2016/17 & 2017/18. The only thing is that as yet he has not received his cheque for 2015 which I believe was automatic if he was eligible for the tax transfer allowance. I completed the online forms in January. Am I being too impatient with HMRC ?

Well, HMRC is being too sloppy with its refunds (they dont pay late fees so why should they care?). On present form they might get round to it by Easter.

Consumerist

bamgbost wrote: »

Im a little confused with the MA thing.
I applied in the first year. 15/16 and was given it to my tax allowance and tax code reflected it. However in the current tax year I have a standard L code. No letter or anything to explain why I no longer have it. . .

I'm a little confused too.

If you applied for MA then it will be your spouse whose tax code will increase and will be given any tax refund; your tax code will be reduced and you won't be "given" anything.

lakesider52

I am a retired tax manager who specialised in taxation of internationally assigned staff. I am happy to confirm that you will both be able to claim the allowance. Citizenship is not relevant for this purpose. The ability to claim tax allowances is based on whether one is resident in the UK for tax purposes and it appears that both your wives are so go ahead and claim.