Marriage allowance mistake means I now owe HMRC!!??

Redleaves

Owing to a number of things, mostly sleep deprivation, I mistakenly applied to transfer my allowance for the wrong tax year: 2015/16 rather than the current year. I haven't earned anything this tax year but I did last tax year. I tried to cancel it as I noticed my mistake straight away but kept getting caught in a loop of links leading back to the same part of the site that didn't have a way to cancel the application. Now I have received a letter saying I owe the £212 for that tax year! Anyone made this mistake and not had to fork out £212? I called HMRC who said that they can't reverse it as it's for the last tax year, so there's nothing they can do, but there's a chance that someone might be able to do something if I write to head office. I just assumed that because I earned more than my allowance for that year I wouldn't be eligible so I'd just get an email telling me it was unsuccessful, but apparently you can transfer your allowance even if it doesn't benefit either of you! :mad:

Dazed_and_confused

Google is your friend (you seem to have been told a load of rubbish).

Gov.uk states

3. If your circumstances change
You or your partner can cancel Marriage Allowance online. You’ll be asked to prove your identity using information HM Revenue and Customs (HMRC) holds about you.

The date the allowance ends depends on who cancels it.

If you stop transferring the allowance to your partner, it will run until the end of the tax year (5 April).

If your partner asks to stop receiving your allowance, HMRC will backdate the change to the start of the tax year you first started transferring it.

Per final paragraph you just need to persuade your spouse to cancel the claim and then all will revert back to normal. You can then get some sleep and start again.

I am assuming your spouse didn't pay £212 tax in 2015:16 as if they did you probably don't need to bother doing anything as they will get a refund because of the allowance you have transferred.

sheramber

If your partner asks to stop receiving your allowance, HMRC will backdate the change to the start of the tax year you first started transferring it.

So, the current year will be cancelled as well?

Dazed_and_confused

I guess so but as i said op can catch up on his sleep and start all over again and make a new claim just for this year, worth the effort if it will save £212 (which isn't known for certain yet - possible op's spouse could be getting £212 back for 2015:16)

Redleaves

Thank you, I will tell him to request a cancellation asap!