📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Marriage Allowance tax transfer

Options
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! 

Comments

  • sheramber
    sheramber Posts: 22,621 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    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.




Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.2K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.