Self Assessment - Where to enter Marriage Allowance?

cheesetoast

So, I'm getting quick off the mark and trying to do my 2015/16 tax return online... but I can't find out for the life of me, where to enter that I've received the transfer of tax allowance from Mrs Toast under the Marriage Allowance scheme?

It wants to tax me as if my personal allowance was £11000 on the final calculation, when of course it should be doing it on £12100.

Anyone able to shed any light?

chiny

Ah not just me being the sad person

I get the same problem; although I can find the item where Mrs Chiny gives the allowance transfer in her return.

I think there is also a problem with listing a loss from a previous tax year on property rental which gets taken as a profit this year.

And most of the HELPs appear empty.

I've given up until summer when perhaps all will have been fixed.

Hal17

Same problem - waiting a call back from the tax office.

Dazed_and_confused

The Self assessment tax calculation guide states that if you are the recipient then you can't claim this on your return. I guess this makes some sense as it is the low/non earner who has to make the claim to transfer the allowances to their husband/wife.

Not altogether clear how the recipient then gets the extra allowance though

"The Marriage Allowance transfer for the recipient is not claimed on the Self Assessment tax return but it is included in the Self Assessment tax calculation, if there is a digital claim"

sheramber

Explanation given in this thread

https://forums.moneysavingexpert.com/discussion/5180792

Sterlingtimes

I had exactly the same problem with the Marriage Tax Allowance. I spoke to "David" in Cardiff when I telephoned Revenue & Customs. He spent ten minutes working through the form and could not resolve the issue. He told me that neither he nor his colleagues had received any training in this.

I also experienced the problem with the bringing forward of property losses from previous years. If the full loss is entered, the present years profit or loss correctly amends the carry forward figure, but then this years property profit if any is overridden by the brought forward amount in the final statement. There appear to be problems with the design of the self-assessment system for 2015/16. The customer has to experiment with various inputs to test the results given: clearly the R&C have not tested their own system.

agrinnall

sheramber wrote: »

Explanation given in this thread

https://forums.moneysavingexpert.com/discussion/5180792

In post #347.

"Apparently, even though HMRC's own records correctly show the transfer of allowance, the online calculation will not take account of it unless the DONOR of the allowance has first completed and had accepted their own tax return. If done online this apparently takes 72 hours to update the donor's HMRC account and a further 3 to 7 days to migrate onto the RECIPIENT'S online record. Only after that can the recipient have their tax liability accurately calculated online taking account of the tax allowance transferred to them."

Thanks due to GraemeH.

Sterlingtimes

agrinnall wrote: »

In post #347.

"Apparently, even though HMRC's own records correctly show the transfer of allowance, the online calculation will not take account of it unless the DONOR of the allowance has first completed and had accepted their own tax return. If done online this apparently takes 72 hours to update the donor's HMRC account and a further 3 to 7 days to migrate onto the RECIPIENT'S online record. Only after that can the recipient have their tax liability accurately calculated online taking account of the tax allowance transferred to them."

Thanks due to GraemeH.

Thank you for this guidance. Given that DONOR probably earns very little if anything they are the least likely people to complete a tax return.

dori2o

GraemeH wrote: »

My wife and I both received confirmation from HMRC in early February of change of coding for 2015/16 following my wife's election to transfer £1060 of her allowance to me. We also received new coding notices for 2016/17 showing continuation of the transfer (now at increased rate of £1100).
Trying to be ultra efficient, I completed an online tax return for 2015/16 yesterday, 6th April 2016 (the very earliest it was possible to do so as it was the first day of the new tax tear). No problems encountered until it reached the final calculation of my tax liability when it insisted on allowing me only the standard personal allowance and no mention of the transfer from my wife. As such it wanted to charge me an additional £212 in tax (ie £1060 x 20%) that is NOT due!
Today, I called HMRC to try to resolve this and after two calls (the first being conveniently disconnected) and speaking to 3 different people I was advised that this is a known issue. Apparently, even though HMRC's own records correctly show the transfer of allowance, the online calculation will not take account of it unless the DONOR of the allowance has first completed and had accepted their own tax return. If done online this apparently takes 72 hours to update the donor's HMRC account and a further 3 to 7 days to migrate onto the RECIPIENT'S online record. Only after that can the recipient have their tax liability accurately calculated online taking account of the tax allowance transferred to them.
Surely there has to be a simpler way?
Fortunately, this should only be a problem this year as 2015/16 was the first year of the system but watch this space...................................!

This isn't quite right.

Where BOTH the RECIPIENT and the TRANSFEROR are in SA, the RECIPIENT will receive a credit of £212 on their SA statement once the TRANSFEROR has submitted their tax return with the correctly completed Marriage Allowance section completed.

Where the TRANSFEROR is in SA but the RECIPIENT is not, the relief will be given by way of an additional allowance in the tax code.

Where the RECIPIENT is in SA but the TRANSFEROR is not, a credit of £212 will be introduced onto the Recipients SA statement once the tax return is completed assuming a claim for Marriage Allowance has been made already.

Where neither is in SA the claim is dealt with by way of tax code adjustments.

In all cases the initial Marriage Allowance claim must have been made outside of SA. You CAN NOT make a first time/initial Marriage Allowance claim directly on the SA return, you must complete the process either online or over the phone to set up the link between the 2 taxpayers otherwise the record won't be linked and no credits/code changes will take place.

I will post this information on the other thread also.

Dazed_and_confused

I think you must be wrong about this. I have started to complete my 15/16 return and there is nothing to suggest you have to make a claim outside of SA and then again on the tax return. I have also looked at the paper return and notes on gov.UK and they seem quite clear to me in that you (as the transferror) can make your claim on the tax return.

Dazed_and_confused

Just noticed as well that the tax return and notes make no mention of the fact that you actually have to be married when you make claim - as time goes by there are bound to be people who separate and then realise they could get £200+ for a year in which they were married but no longer qualify to make a claim.