Marriage Allowance

batman44

Dazed_and_confused wrote: »

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.

I think you will find it makes perfect sense, I have contacted HMRC and they have told me this is what will happen in my case, just waiting on confirmation in my monthly pay this month.
You will or should also note that post 819 proves this is the case. You should also note this was confirmed by Martin on Radio 5 3 weeks ago which inspired me to claim in the first place.

sheramber

On the contrary. Post 819 says the OP got an adjustment to 2016/17 in his code number and will receive a cheque for 2015/16 for HMRC.

You have your years the wrong way round

batman44

sheramber wrote: »

On the contrary. Post 819 says the OP got an adjustment to 2016/17 in his code number and will receive a cheque for 2015/16 for HMRC.

You have your years the wrong way round

I stand corrected, it does make sense for them to do it that way contrary to what they told me over the phone, perhaps he was just agreeing with me or trying to confuse me.
I am more annoyed that my missus has now got a tax demand from them for owed tax of £214 due to the adjustment and it will have to be payed back out of the rebate due, so we only gain by £220.

Mr_K

Bit confused about marriage allowance and whether we qualify.

Mrs K's salary is £11900, but pays no tax. She has a clothing washing allowance of about £300 and pension contributions of £900, so her taxable pay is £10800, hence no tax.

When they say you have to have an income of less than £11k to qualify for MA, and transfer your allowance, do they mean taxable pay or gross salary?

Any ideas ? i can find no guidance anywhere .

Dazed_and_confused

You would definitely normally pay tax on salary of £11900 unless her pension was deducted at source I.e. her P60 shows salary of £11000.

£300 seems very high for laundry.

What does her tax code show and which year(s) does your wife wish to apply for?

Mr_K

Dazed_and_confused wrote: »

You would definitely normally pay tax on salary of £11900 unless her pension was deducted at source I.e. her P60 shows salary of £11000.

£300 seems very high for laundry.

What does her tax code show and which year(s) does your wife wish to apply for?

She's a nurse, pension is deducted at source. Tax code is 1138L (think the extra allowance is tights, shoes and laundry). P60 for 2015/16, shows a taxable income of £10760. Guess its this year initially, we'd claim for but confused whether we're eligible. the guidance seems to say your not eligible if you earn more than £11k - which her gross salary (£11900) is.

Dazed_and_confused

You're overcomplicating this. Her latest payslip should show her taxable pay for the month(?) and taxable pay for the tax year to date - what are these amounts and will she earn the same (taxable) amount in March?

"Salary" is irrelevant

Mr_K

Dazed_and_confused wrote: »

You're overcomplicating this. Her latest payslip should show her taxable pay for the month(?) and taxable pay for the tax year to date - what are these amounts and will she earn the same (taxable) amount in March?

"Salary" is irrelevant

taxable pay to date is 10079, taxable pay last month was £903, so I guess taxable for the year will be around £10982 - is this the figure they mean by 'income' ? Guess we'd wouldn't be able to claim much this year, but next year when the personal allowance goes up to £11500 we might ?

Consumerist

Mr_K wrote: »

. . . Mrs K's salary is £11900, but pays no tax. She has a clothing washing allowance of about £300 and pension contributions of £900, so her taxable pay is £10800, hence no tax. . .

Looking at your numbers it looks as though you may qualify. Transferring £1,100 of Mrs. K's allowance to you means she will then pay tax because her tax allowance will reduce by £1,100 to £11,389 (assuming 1138L) - £1,100 = £10,289 (tax code 1028M). Tax will become due on about £520.

But you gain tax relief on an extra £1,100 of earnings - assuming you will then pay only basic-rate tax.

If in doubt, apply anyway.

polymaff

Consumerist wrote: »

But you gain tax relief on an extra £1,100 of earnings - assuming you will then pay only basic-rate tax.

No, if you qualify to be a MAT recipient, you receive a fixed, £220, payment. Can we stop spreading this suggestion that the income tax assessment of such a recipient is altered at all by being a MAT recipient?