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Marriage Allowance tax transfer
MollyMoon
Posts: 2 Newbie
in Cutting tax
I saw Martins advice about claiming the marriage allowance by transferring some of my allowance to my husband as I don't pay tax and he does. Both pensioners. I wrote to HMRC to enquire about it as I couldn't provide the ID proof online.
Out of the blue yesterday hubby had an HMRC refund of tax letter with a cheque attached for overpayment of tax. Lovely we thought until the arrival of 7 separate letters from HMRC today.
4 were for me each saying that I owed the taxman a total of almost £700. Wasn't expecting that. We don't have access to any financial advice. Anyone have any ideas? If I had known that this would be the outcome I would not have bothered at all!
Out of the blue yesterday hubby had an HMRC refund of tax letter with a cheque attached for overpayment of tax. Lovely we thought until the arrival of 7 separate letters from HMRC today.
4 were for me each saying that I owed the taxman a total of almost £700. Wasn't expecting that. We don't have access to any financial advice. Anyone have any ideas? If I had known that this would be the outcome I would not have bothered at all!
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Comments
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Although you didn't pay tax you have not had the full amount of free personal allowances that were transferred, so you now become liable for tax.
e.g personal allowance £12,500
income £12,000 - you don't pay tax
marriage allowance transfer 10% X 12,500 = 1250
adjusted personal allowance now 12500- 1250 = 11250
income 12, 000 - 11,250 = 750 now chargeable to tax.
How much refund did your husband get? Was it more than the £700 that you are now due pay so that as a couple you are better off.
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