Self Assessment - Where to enter Marriage Allowance?

Guardsman01

My wife's return for 2015/16, for which she received a refund last week, included a reduction of £1060 personal allowance which she elected to transfer to myself. However, I cannot submit my return because the online calculation does not include the additional £1060 personal allowance transferred from my wife. At the moment, then, my assessment shows that I owe the taxman £212 when in fact I owe him nothing at all. Are you suggesting that I should go ahead and submit the assessment notwithstanding that it shows a sum due of £212 to the taxman rather than the true amount of nil?

Dazed_and_confused

Yes, dori2o seems to be saying you, as the recipient, will never have the marriage allowance in your tax calculation. Instead a credit is added to your self assessment statement.
Seems complicated but maybe its because the lower earner has to authorise the transfer, the higher earner can't just claim it so maybe HMRC were worried everyone filling in a.return would claim the extra allowance and they'd lose a few zillions!!

Have a read through dori2o's posts earlier in this thread.

Birdie6972

Please see thread "starting rate for savings" in "cutting tax" forum. Sorry, but I don't know how to put the link in here.

Thanks

speedyrite

dori2o wrote: »

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.

I am Recipient (in SA), OH is Transferor (not in SA).

My tax return was completed & submitted online and, as expected, the SA online calc did not reflect my receipt of MA and so says I have underpaid tax of £X for 15/16.

Subsequently received a printed SA302 in the post. Page 1 says "tax due under SA for 15/16 is £X due by 31/01/2017" but the detailed tax calc on page 3, which DOES reflect my receipt of MA, states "Income Tax overpaid £Y" (which I believe to be correct).

At the moment, SA online reckons there is no repayment due and that I still owe £X!

One part of the system thinks I owe tax, the other tells me I have overpaid! Over-complicated seems to be an understatement.

So, when will the credit in respect of the MA transfer be introduced onto my (the Recipients) SA statement, so that I can request repayment of £Y?

johncr

I am in the same position as speedyrite. I sent a message on the SA ONLINE system, and subsequently received an email advising that they had sent me a message, but no message turned up! Sent them a message about the missing message, but only received a pretty generic reply. Guess we all have to wait !!

sheramber

speedyrite wrote: »

I am Recipient (in SA), OH is Transferor (not in SA).

My tax return was completed & submitted online and, as expected, the SA online calc did not reflect my receipt of MA and so says I have underpaid tax of £X for 15/16.

Subsequently received a printed SA302 in the post. Page 1 says "tax due under SA for 15/16 is £X due by 31/01/2017" but the detailed tax calc on page 3, which DOES reflect my receipt of MA, states "Income Tax overpaid £Y" (which I believe to be correct).

At the moment, SA online reckons there is no repayment due and that I still owe £X!


One part of the system thinks I owe tax, the other tells me I have overpaid! Over-complicated seems to be an understatement.

So, when will the credit in respect of the MA transfer be introduced onto my (the Recipients) SA statement, so that I can request repayment of £Y?

From experience, when the system get round to it and I doubt anybody can tell you when that will be.
I expect HMRC don't see any urgency as any payment is not due until January 2017. The fact that some people may be due a repayment won't have been considered.

hollie.weimeraner

What a farce!

I'm in the same situation having completed my SA it shows me owing £218.

Obviously the marriage allowance isn't catered for so will now submit my SA and wait for the adjustment to come.

Am I the only one that thinks I will have to pay the full amount come January and then try and claim it back again in order to avoid being fined.

:mad:

Guardsman01

Problem has been solved. Received today from the Revenue a note that my account is clear - i.e. the calculation enclosed with the letter correctly includes the transfer of allowance from my wife. I called the Revenue last week and they told me to complete my self-assessment notwithstanding that it showed a figure of £212 owing and they would make the necessary adjustment thereto which they have now done.

zagfles

speedyrite wrote: »

I am Recipient (in SA), OH is Transferor (not in SA).

My tax return was completed & submitted online and, as expected, the SA online calc did not reflect my receipt of MA and so says I have underpaid tax of £X for 15/16.

Subsequently received a printed SA302 in the post. Page 1 says "tax due under SA for 15/16 is £X due by 31/01/2017" but the detailed tax calc on page 3, which DOES reflect my receipt of MA, states "Income Tax overpaid £Y" (which I believe to be correct).

At the moment, SA online reckons there is no repayment due and that I still owe £X!

One part of the system thinks I owe tax, the other tells me I have overpaid! Over-complicated seems to be an understatement.

So, when will the credit in respect of the MA transfer be introduced onto my (the Recipients) SA statement, so that I can request repayment of £Y?

Same here. Paper statement has the MAT, online doesn't. Paper statement several weeks ago.

This way of doing it is completely farcical - why can't they do it in the same way as any other allowances eg the old married couples' allowance, or pension tax relief etc, and let people claim it on the return?

polymaff

zagfles wrote: »

Same here. Paper statement has the MAT, online doesn't. Paper statement several weeks ago.

This way of doing it is completely farcical - why can't they do it in the same way as any other allowances eg the old married couples' allowance, or pension tax relief etc, and let people claim it on the return?

AIUI there was an issue within HMT/HMRC of how to stop taxpayers exploiting MAT. The solution settled upon was to keep the claimant out of the process.

What on earth is the purpose of the Office of Tax Simplification?

"We give independent advice to the government on simplifying the UK tax system"

N. B. - that's "independent" as in "Part of HM Treasury" :rotfl: