Help with Age Related Married Allowance please!

toby_puppy

Hello - can anyone help please.

Here is the scenario.

Married couple
Husbands dob 13.2.1926
Wife dob 17.8.35

During 2014-15 they claimed the minimum age related married couples allowance through their coding, half each.

So they received £3140 x 10% rate = £314
The £314 allowance was split 50/50 so in effect they got £157 each.

However, I believe they can claim more than this because their income wasn't that high.

Husband gross private pension 2231
Gross interest 1016
State pension 7969
Total income husband 11217
No tax paid

Wife private pension 7858 gross
Gross interest £2043
State pension £6379
Total income wife £16281
Tax paid during 14/15 £966.75

So it looks like they would be entitled to the maximum allowance of £8165 @ 10% due to their level of income.

However, I am completing self assessment tax returns for them and it seems to be a bit confusing as to which boxes to complete after reading the following -

If you are the husband (marriages up to 5 December 2005), or the spouse or civil partner with
the higher income (marriages and civil partnerships on or after 5 December 2005), you should complete box 1 and, where appropriate, boxes 2 to 5 and box 9.
If you are the wife (marriages up to 5 December 2005), or the spouse or civil partner with the lower income (marriages and civil partnerships on or after 5 December 2005), please read the notes to help you fill in boxes 6 to 11.
If you cannot use all of your Married Couple's Allowance or you want your spouse or civil partner to have your surplus
allowance, please read the notes and then put `X' in box 10 or box 11.

Is anyone able to advise exactly what to enter in this section on both his and hers tax returns, as it looks like it should all be given to her as she has the higher income and pays tax . I was going to enter the husbands name and dob in boxes 1 and 2 on HER return but reading the above, it looks like you can only use these boxes if you are the HUSBAND or if you were married AFTER 2005.

She has the higher income and pays tax and were married way before 2005.

Any advice would be really appreciated, getting a headache now!

sheramber

Have you read the additional pages notes.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/454491/sa101-notes_2015.pdf

toby_puppy

thank you sheramber.

the notes are really helpful.

does anyone know if completing the 2014-15 tax returns will sort the transfer of surplus allowance from husband to wife as it mentions form 575 too. does that have to also be filled in even though they are both submitting tax returns? i would have thought the tax returns would take care of everything as they show all the income received?

also, what is the best way of amending previous years say 2013-14 as I am sure they only recevied the minimum married couples allowance through their codings but I have worked out that they would be eligible for the maximum allowance - ? is that something that could be done via a phone call to the tax office?

many thanks

toby_puppy

Phoned HMRC and they said they can transfer the husbands surplus married couples allowance to his wife over the phone so it matches the Tax Returns.

One final question -

The MINIMUM married couples allowance is given through their coding notice. However, they are entitled to the FULL mca due to their income being below £27k 2014-15.

My question is, would this be picked up automatically by HMRC if they weren't filling in tax returns or applying for it, or is it something they would have lost out on and just been given the minimum amount?