Just messed up

bodsj

I lost my job Aug 2019 and received redundancy. August 20 I received a tax rebate approx 5K. I am still unemployed and my wife is still working. I decided to move my marriage allowance tax to my wife, this is where i think i made a big mistake as my redundancy and rebate fall within tax year 19/20. Anything I can do?

Grumpy_chap

There is no tax liability on the tax rebate.
Redundancy payments (up to £30k) are often also not subject to income tax.  Why did the redundancy pay take a year to come through?

Dazed_and_C0nfused

I decided to move my marriage allowance tax to my wife,

For which tax year(s)? 

What problem do you think this could have caused?

Does your wife still pay tax even after the benefit of the Marriage Allowance is taken into account on her tax?

bodsj

Thanks for your replies , I was made redundant in August 2019 so tax year 19/20. This year i received tax rebate 5K August 20. when redundant I was paid PILONotice which took me to Nov 2019. I do not think i will earn above £12000 in 2021, so i thought i would transfer marriage allowance to my wife who earns over the threshold, I did this online and now thinking my rebate would be taxable to offset my wifes future earnings ( if that makes sense?)
 

Dazed_and_C0nfused

No it doesn't really make sense.

For 2019:20 you will have a Personal Allowance of £11,250 and your tax will be based on this.  If you received the £5k refund before applying for Marriage Allowance then you may need to pay upto £250 back to HMRC (for the 2019:20 tax year)

For 2019:20 your wife will have a Personal Allowance of £12,500 but Marriage Allowance will entitle her to a £250 deduction in her tax liability.  This will most commonly result in her getting a tax refund of c£248 (for 2019:20).