Self Assessment - Where to enter Marriage Allowance?

David26th

See I debated this but it seems a bit odd.

I'm both employed, and self employed.

My P60 shows my tax code (as do my pay slips) at 1166M which includes my spouses transferred marriage allowance.

When I completed my tax return, put in my employed earnings and tax, and then my self employed figures it shows my personal allowance at 10,600 which is my non marriage allowance code.

My wife has no reason to complete self assessment, she doesn't work, isn't self employed or anything so I can't imagine her having to transfer it through that to me...I may have to ring and see what's happening at some point.

Edit: when you go to view your return at the end the save able version shows a marriage allowance section with options for your spouses details including NI number but there's nowhere on the form to put these in. Interesting.

dori2o

David26th wrote: »

See I debated this but it seems a bit odd.

I'm both employed, and self employed.

My P60 shows my tax code (as do my pay slips) at 1166M which includes my spouses transferred marriage allowance.

When I completed my tax return, put in my employed earnings and tax, and then my self employed figures it shows my personal allowance at 10,600 which is my non marriage allowance code.

My wife has no reason to complete self assessment, she doesn't work, isn't self employed or anything so I can't imagine her having to transfer it through that to me...I may have to ring and see what's happening at some point.

Edit: when you go to view your return at the end the save able version shows a marriage allowance section with options for your spouses details including NI number but there's nowhere on the form to put these in. Interesting.

Which is why you have to make the claim seperate to the tax return.

The 2 individuals records are then linked via a seperate HMRC system.

Even where one of the married couple has no income at all they will still have a record on the PAYE system, this is because the system is linked directly to NIRS (National Insurance Recording System) and records are set up whenever NI numbers are issued.

The system which is updated with the marriage allowance (MA) then ensures that each persons tax records, both SA and PAYE, are updated with the necessary details regarding MA.

For those who are required to complete a Self Assessment and are the RECIPIENT of the allowance will see a credit introduced to their SA statement for £212. This is the taxrelief due for MA in the 15/16 taxyear. The MA will not appear on the tax calculation.

As far as we have been told this is likely to the way this is done year on year.

If the Transferor is also in SA, the £212 credit will be introduced to the RECIPIENT SA statement once the TRANSFEROR has submitted their tax return. BUT, only if the MA claim has already beenmade prior to the tax return being submitted as the SA system has to have received the informatio9n fromthe other system that is used to initiate the link between the 2 taxpayers records.

If the Transferor is not within SA (but the Recipient is), then the £212 credit will be introduced to the statement once the taxreturn is completed BUT ONLY IF the MA claim has already been made.

If both are outside of SA, then you make a claim to MA and the system that is used to create the link between the taxpayer records updates the PAYE service and then the PAYE service updates and issues the tax codes where necessary.

This does not mean thatyou will miss out on the 2015/16 tax relief if you have not already made the claim to MA (seperate to SA), but you will have to make a claim to MA in the normal way before any credits will be introduced to SA records and where necessary 15/16 PAYE records will be updated and refunds issued if the Recipient is not in SA.

dori2o

Dazed_and_confused wrote: »

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.

If only I was wrong as it makes a very simple claim to tax relief much more complicated than it needs to be. However that seems to be par for the course at themoment when it comesto new allowances, i.e. the personal savings allowance and the Dividend Tax Reform which has been made much more complicated than is necessary with the coding adjustments that are being used.

We've had this confirmedto us on Thursday last week after a number of customer contacts regarding this matter.

starM

Hi,

So just to confirm:-
Both me and my other half are registered for Self Assessment.
We both have income from property. I am on PAYE employment.
Last year I requested to transfer my other half personal allowance which was all done and received my amended tax code through the post.
I also received my new Tax code for 16/17, 11k personal allowance, transfer of allowance £1100 - Tax free amount £12100.00 - Tax code 1210M.

So I am correct in saying my other half will need to complete her tax return first. Complete transfer allowance section with my details. Submit SA return. If I complete my SA return a week later will system recognise that I am eligible for transfer allowance?

Or will it just show old personal allowance but a credit of £212 will be applied to my SA account?

Thanks
MS

dori2o

starM wrote: »

Hi,

So just to confirm:-
Both me and my other half are registered for Self Assessment.
We both have income from property. I am on PAYE employment.
Last year I requested to transfer my other half personal allowance which was all done and received my amended tax code through the post.
I also received my new Tax code for 16/17, 11k personal allowance, transfer of allowance £1100 - Tax free amount £12100.00 - Tax code 1210M.

So I am correct in saying my other half will need to complete her tax return first. Complete transfer allowance section with my details. Submit SA return. If I complete my SA return a week later will system recognise that I am eligible for transfer allowance?

Or will it just show old personal allowance but a credit of £212 will be applied to my SA account?

Thanks
MS

The calculation for you will make no reference to the MA, therefore you will only get the benefit of 10,600 allowance in the tax calculation from the SA tax return. Once your wife completes her tax return a credit of £212 will be applied to your statement.

David26th

dori2o wrote: »

If the Transferor is not within SA (but the Recipient is), then the £212 credit will be introduced to the statement once the taxreturn is completed BUT ONLY IF the MA claim has already been made.

.

See this, to my reckoning is me and my wife. I'm emloyed but need to self assess and receive the allowance.

She is unemployed and transfers to me.

We competed the MA claim some time ago and have had my employers adjust my PAYE tax code as appropriate.

So what I understand from what you say is that if I complete the tax return this will eventually just sort itself out - just don't pay what it shows me as owing until it does? Or am I being dense...I hate tax returns.

GUYd

cheesetoast wrote: »

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?

I also spoke to HMRC last week re:this issue.

They told me that they had been notified that morning of an error on the online Self-assessment form and that the marriage allowance is missing from the personal allowance.

It will be connected in due course.

When I asked 'How long until this problem is fixed?' I was told, and this is EXACTLY what I was told, 'How long is a piece of string .....'. :eek:

Good 'ol HMRC!

David26th

Sounds about right.

Oh well if the government don't want my tax for another six months while they sort it out that's fine :-) better in my bank anyway, I'll just file in September like I do most years I was only trying to be efficient as I've ceased trading recently.

Guardsman01

Wife completed her tax return. We have her tax refund money in the bank from the tax man. But my draft assessment still doesn't show the marriage allowance transfer from my wife.

Dazed_and_confused

What do you mean by draft assessment?

I'f you haven't sent the.return to HMRC what exactly are you expecting? From what dori2o, who seems very knowledgeable about all this, says credit for the.marriage.allowance.will only be given after you have sent your return in to HMRC