Marriage Allowance

oligopoly

Apologies if this is on the wrong board. Can I just check (as I don't want to get in trouble!)

We registered under the Marriage Tax Allowance a year or two ago and I have been on this tax code since. My wife, who is self-employed, will be paying tax this financial year for the first time as she's over the threshold, making us ineligible for the MTA. Does she or I need to notify HMRC?

On this page Martin says:

"At the end of the tax year HMRC will reconcile your tax affairs, send a P800 calculation and recover any tax due in the following year through an adjustment to your tax code to claw it back via the payroll (or self assessment for the self employed)."

This is slightly greek to me and I'd prefer someone with the prior experience to confirm whether or not we should be doing anything.

Thank you in advance.

p00hsticks

No personal experience, I'm afraid, but my reading of that is that if you don't tell them, HMRC will eventually realise at the end of the year and claw it back - so you will still get the allowance but your wife will then end up paying equivalently more tax as part of her self assessment at the end of the year.

If you don't want that to happen then she (as the transferor) needs to contact them and ask for the allowance to be removed.

FYI, there is a long running thread on Marriage Allowance over on the 'cutting tax' board which is probably a better place for any future queries on the subject

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