married persons tax allowance payment process

RobertLBJ

I thought this may be of some interest to people regarding married persons tax allowances. According to Sam McFaul Personal Finance Writer in his excellent article on married persons tax allowance, he suggests that the payment or repayment of this allowance for previous years is usually automatically by cheque to the person claiming the allowance, i.e. the non tax payer. However, having spoken to HMRC several times over the last six weeks, I was recently told by HMRC, inclusing supervisors, that this is never the case and the tax allowances are merely transferred electronically to the spouse in every case. I am posting this to hopefully save some time for both UK residents and HMRC, thank you,

Dazed_and_confused

RobertLBJ wrote: »

I thought this may be of some interest to people regarding married persons tax allowances. According to Sam McFaul Personal Finance Writer in his excellent article on married persons tax allowance, he suggests that the payment or repayment of this allowance for previous years is usually automatically by cheque to the person claiming the allowance, i.e. the non tax payer. However, having spoken to HMRC several times over the last six weeks, I was recently told by HMRC, inclusing supervisors, that this is never the case and the tax allowances are merely transferred electronically to the spouse in every case. I am posting this to hopefully save some time for both UK residents and HMRC, thank you,

If this is the advice Sam McFaul is giving then I don't think his article can really be classed as "excellent"!!

Only the low earner can apply for Marriage Allowance and this will either have no impact on the low earner or they could pay more tax as a result. It is only the higher earner, the person receiving the Marriage Allowance, who will ever get a refund.

Peterbusman

A short while ago I got married,I am over 70 and my wife is four years younger,so neither one of us are working.We both are paying tax on our pensions.I have not informed the tax office as I don’t want to lose any pension.So is it worth changing two single person allowance to married allowance.Thankyou in advance.

molerat

Why would informing the tax office lose you some pension ? If each of you have an income in excess of £11850 then no point either of you applying for marriage allowance as all it would do is increase one person's tax and reduce the other. There is no such thing as married person's tax (except for those born before 1935), you are taxed individually but one of a couple can transfer 10% of their personal allowance to their partner.

TadleyBaggie

Peterbusman wrote: »

So is it worth changing two single person allowance to married allowance.Thankyou in advance.

That's not how it works, everyone has their own allowance and is taxed individually. All you can do is transfer 10% of the lower earners allowance to the higher earner.

sheramber

Each person has their own personal allowance which does not get changed or withdrawn on marriage.

If one of you was born before 6April 1935 you can claim an extra married couples allowance

https://www.gov.uk/married-couples-allowance

The Marriage Allowance is not an extra allowance but the option to transfer some of a low earner's personal allowance to the other. As you both pay tax on your income that would not be of benefit to you.