Marriage Tax has bitten me in the bum! Please help!

Gkkey22

I got my parents to apply for marriage tax as I knew they Could be intitled to a tax rebate by doing this. Unfortunately, I didn't know that as soon as I had done this, my mum, who doesn't normally pay tax will now have to stay paying it and has been whopped with a bill to HMRC for nearly £300 backdating from 2015. Is there anything I can do about this? I feel awful as it was my suggestion!

polymaff

Calm down!


Start by seeing if, overall, the two of them have benefitted.


If they have - and they probably have - then you've done them no harm.

Dazed_and_confused

I got my parents to apply for marriage tax as I knew they Could be intitled to a tax rebate by doing this. Unfortunately, I didn't know that as soon as I had done this, my mum, who doesn't normally pay tax will now have to stay paying it and has been whopped with a bill to HMRC for nearly £300 backdating from 2015. Is there anything I can do about this? I feel awful as it was my suggestion!

It sounds like you haven't fully understood how Marriage Allowance works. Particularly the difference between eligibility (most people) and being able to benefit (less people) and the impact on each person.

But as polymaff says it might turn out to be worthwhile for them overall as a couple.

If you have made your mum pay tax by persuading her to apply and the £300 owed is for the three tax years 2015:16, 2016:17 and 2017:18 then it is possible your dad could be due a refund of around £655 for the same three tax years (assuming he has paid sufficient tax to get the full benefit).

You really need to wait and see his calculations/refund before doing anything else.

Whatever happens your mum is likely to be at the mercy of your dad. If he gets the refund she can try and persuade him to pay her tax bill. If she wants to cancel the application that would only apply from 6 April 2019, your dad would have to cancel if for things to go back to the original position.

But chances are he will get a refund which is worth more than the tax she is having to pay.

It might be prudent for you to check her situation for the forthcoming year just to make certain it continues to be worthwhile for them as a couple.

Susieg12345

That happened to me. I applied for marriage allowance as I had retired & my husband was still working self employed. Filled the forms in online last June and was told that my husband would x amount of rebate but last year about September I got a tax bill for £220.20. My husband rang the tax office and queried this as my allowance was still the same but they it was correct that I owed the tax. Apparently because I had claimed a matured private pension in 2015 and was taxed on it then claimed the tax back I owe them. They said we could reverse it but never told us how to. So far my husband has not benefit from the allowance. So I know how you feel I feel I have been robbed. So any advise would be much appreciated. Thanks you

polymaff

Susieg12345 wrote: »

That happened to me. I applied for marriage allowance as I had retired & my husband was still working self employed. Filled the forms in online last June and was told that my husband would x amount of rebate but last year about September I got a tax bill for £220.20. My husband rang the tax office and queried this as my allowance was still the same but they it was correct that I owed the tax. Apparently because I had claimed a matured private pension in 2015 and was taxed on it then claimed the tax back I owe them. They said we could reverse it but never told us how to. So far my husband has not benefit from the allowance. So I know how you feel I feel I have been robbed. So any advise would be much appreciated. Thanks you

Advice? Sort yourselves out.


Identify what has and what has not been caused by electing for Marriage Allowance Transfer. When you've peeled away all the stuff about your pension etc. you'll almost certainly find that you (plural) have not lost by electing for MAT.


Just like the OP's parents.

Dazed_and_confused

So I know how you feel I feel I have been robbed

But you didn't help yourself by checking if it would be beneficial to apply first. HMRC have simply acted on your application. It was your choice to apply for a tax year when you were seemingly already liable to tax.

Notwithstanding that your husband should still be able to receive a tax reduction for the same tax year. Which I presume is 2015:16.

He needs to contact HMRC and check if he has been given the Marriage Allowance tax credit and if so why hasn't he received a refund (often about £212 for 2015:16). It might be he owed some tax and he now owes £212 less or he may still be owed a refund of £212 but he needs to find out from HMRC.