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Cancelling Marriage Allowance

Hi,

Person 1 has M tax code and Person 2 has N tax code. Person 2 applied for the Marriage Allowance.

Person 1 and 2 ended up separating.

Person 2 has cancelled the Marriage Allowance after 2 years of separation and is now asking Person 1 to pay them back the money that they saved over the 2 year period before they cancelled the Marriage Allowance.

Does person 1 have to pay any monies and who should they pay to? Person 2 or HMRC?


Comments

  • First of all when was the cancellation effective from?

    As I understand it Marriage Allowance applies for a full year or not at all i.e. you either get it or you don't, no half measures.

    Once that is known things will become clearer.
  • First of all when was the cancellation effective from?

    As I understand it Marriage Allowance applies for a full year or not at all i.e. you either get it or you don't, no half measures.

    Once that is known things will become clearer.

    The cancellation was Oct 2021.
  • Coinless said:
    First of all when was the cancellation effective from?

    As I understand it Marriage Allowance applies for a full year or not at all i.e. you either get it or you don't, no half measures.

    Once that is known things will become clearer.

    The cancellation was Oct 2021.
    In that case the only tax to be paid back will be for the period 6 April to now and HMRC usually collect that via extra PAYE tax deductions between now and April 2022.

    There won't be anything to pay back to HMRC for any earlier period.

    Anything else is a matter between the two people.
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