Marriage Allowance

Consumerist

batman44 wrote: »

. . . I should get another seperate cheque from HMRC for £212 for 2016/17 as my wife has not earned enough to pay tax . . .

The full tax rebate for 2016/17 is £220.

If you got a rebate cheque for 2015/16 then this year the allowance should already be being paid throughout the year via your increased tax code.

Consumerist

batman44 wrote: »

. . . why not just say we cannot claim for 2015/16 period.

It would seem that HMG were disappointed at the low uptake of this allowance so decided to allow it to be backdated to 2015/16. The problem which now seems to be emerging is that (a) HMRC are backdating it automatically or (b) taxpayers don't understand the consequences of backdating when/if asked.

polymaff

Not at all surprising, given the abysmal explanations given by HMRC on their bit of the gov.uk website. Predicting whether a couple gains, loses or breaks even requires a significant understanding of the Income Tax system, and not the least, the type of income being taxed - but you'd never know this from studying HMRC's clap-trap.

Or some of the clap-trap from the media - including MSE

Consumerist

polymaff wrote: »

. . . Or some of the clap-trap from the media - including MSE

Well, we're not tax experts (most of us, anyway) but we do try to help out where we can. Unfortunately, we don't always succeed.

batman44

The problem which now seems to be emerging is that (a) HMRC are backdating it automatically or (b) taxpayers don't understand the consequences of backdating when/if asked.

From my experience over the last few weeks since we applied is that it was not explained what would happen. Comes as a shock when you get a bill for unpaid tax when you were on the PAYE system due to your code being reduced, my wifes code in this case from 2 years ago when she was in full time employment and earning slightly over the requirements. I think this should be explained more in simple terms as the P800 they sent stated nowhere why she owed them money, all the calulations were correct on the P800 including what she had paid was correct but at the bottom was just a line saying you now owe £214 upaid tax! I had to phone up to get an explanation as to why, hence due to my wife allowance being reduced and mine being increased.

polymaff

Consumerist wrote: »

Well, we're not tax experts (most of us, anyway) but we do try to help out where we can. Unfortunately, we don't always succeed.

Oh, I wasn't taking a pop at the MSE forums, Consumerist, where there is, naturally, a variation of knowledge. It is the "expert" clap-trap that is the problem. For instance, BBC Money Box had an expert on a couple of Saturdays ago really getting MAT so wrong. I emailed the programme pointing out their errors.

email reply # 1:

"You're simply wrong."

email reply # 2


"You're simply wrong https://www.gov.uk/marriage-allowance/how-it-works"

email reply # 3:

"I see what you mean http://www.accountingweb.co.uk/tax/personal-tax/marriage-allowance-mayhem I apologise.."

manimibe

I applied 2 weeks ago for the allowance. We recieved the updated tax codes but no backdated cheque.
Contacted Tax office today and apparently theyre having 'technical issues' and have been for the last couple of weeks, so have NO idea when well receieve the refund. All a bit odd to me!

Anyone else had this response?

DilbertJones

manimibe wrote: »

I applied 2 weeks ago for the allowance. We recieved the updated tax codes but no backdated cheque.
Contacted Tax office today and apparently theyre having 'technical issues' and have been for the last couple of weeks, so have NO idea when well receieve the refund. All a bit odd to me!

Anyone else had this response?

I applied (for my wife as she is the low earner) about a week ago, this was enough time for my tax code to change with my employer and I have got an extra £200 in this months wages

I haven't however received any letter from HMRC regarding the previous year. I think up to April 2015 I hit 40% (due to a bonus) but from April 2015 onwards I havent so I 'should' be receiving another cheque for £212 at some point

batman44

If you apply for MA to be backdated.

2015/16 Allowance will be applied to the higher tax payer and refunds paid back via your next payroll.

2016/17 year end soon. A cheque will be sent via HMRC for 2016/17 period.

2017/18 Your tax allowance will be paid via monthly payroll due to your tax code increase.

Note: If you claim for it to be backdated from 2015/15 and you as the lower income with around £11000pa your allowance will decrease to £9600 thus making you owe tax for 2015/16 period. Your spouse will recieve your allowance so basically cancelling out any gains for that period. Just pay back what you owe with the lump sum from your spouse's rebate.

One thing i have noticed, but not suprised is that they are quick to collect what you owe faster than paying you anything back! They will not get the owed tax baxk until I know the rebate for 2015/16 has been paid into my pay at this month end. I will then look forward to a cheque for 2016/17 period.

Even though we realised that we would not gain from 2015/16 period due to my wife working full time and over the threshold critiria they still processed our claim and would not let us cancel for that year.

Dazed_and_confused

Batman44

Are you really "The Joker"?

This statement makes absolutely no sense whatsoever

If you apply for MA to be backdated.

2015/16 Allowance will be applied to the higher tax payer and refunds paid back via your next payroll.

2016/17 year end soon. A cheque will be sent via HMRC for 2016/17 period.

HMRC do not make repayments for 2015:16 via your current payroll, if refund is due a cheque would be sent or you would be invited to go into your personal tax account and claim for the refund to go direct into your bank account.

A 2016:17 refund could be repaid via current payroll and does not necessarily need a payment direct from the HMRC.