marriage allowance and now husband owes HMRC

hello19

Hi all, my husband made a huge mistake. Husband applied for marriage allowance and for the claim to be backdated as far as the tax year 2016-2017. However, I did not work 2016-2017 or 2017-2018 and now HMRC has sent my husband a letter saying he owes them income tax nearly which is £600 for those two years, despite me not earning anything.  Anyone made this mistake and not had to fork out £600? Husband thought that if he applies for the claim to be backdated HMRC would not count those years where I didn't work. HMRC does pick up calls either. Is there a chance for this to be rectified, can I write a letter or something to head office. 

calcotti

This is more relevant on the Cutting tax forum rather than the Welfare Benefits forum. Cutting Tax — MoneySavingExpert Forum

macman

If the MA has been incorrectly claimed then there isn't really any remedy: he should have his tax code adjusted to recover the amount owing.

I'm not clear on what grounds he is disputing the demand?

Dazed_and_C0nfused

macman said:

If the MA has been incorrectly claimed then there isn't really any remedy: he should have his tax code adjusted to recover the amount owing.

I'm not clear on what grounds he is disputing the demand?

According to gov.uk there seems to be the option to cancel an application.

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

macman

Yes, but in this case the benefit seems to have been already received by virtue of the spouse receiving the extra tax allowance to which they were not entitled. OP can cancel the MA for future years if they wish, but the additional tax due for the 2 years in question will need to be paid.

hello19

Dazed_and_C0nfused said:

macman said:

If the MA has been incorrectly claimed then there isn't really any remedy: he should have his tax code adjusted to recover the amount owing.

I'm not clear on what grounds he is disputing the demand?

According to gov.uk there seems to be the option to cancel an application.

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

Application has been cancelled. We did it soon as we found out about the £600 we now owe to HMRC. I did not work those two tax years yet my husband stupidly claimed to back date those payments meaning he transferred part of his free allowance to me yet a did not earn anything that year. My question is can we call hmrc to explain the situation?

Dazed_and_C0nfused

hello19 said:

Dazed_and_C0nfused said:

macman said:

If the MA has been incorrectly claimed then there isn't really any remedy: he should have his tax code adjusted to recover the amount owing.

I'm not clear on what grounds he is disputing the demand?

According to gov.uk there seems to be the option to cancel an application.

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

Application has been cancelled. We did it soon as we found out about the £600 we now owe to HMRC. I did not work those two tax years yet my husband stupidly claimed to back date those payments meaning he transferred part of his free allowance to me yet a did not earn anything that year. My question is can we call hmrc to explain the situation?

If the application genuinely has been cancelled then he doesn't owe HMRC £600.

His tax debt be recalculated using the normal Personal Allowance so may be minimal.  He should get new tax calculations in due course.

What you need to do now is work out which tax years you should be applying for i.e. those where you won't end up owing tax and then your husband can get the refund you were originally expecting.