wife got letter to pay £600 tax

aayush

hi
hope all is well and safe 

My wife got letter from tax offx=cie to pay £600.00 but she works 5 days a week 20-25 hours a week as online staff at a supermarket it her only job

She as agreed to part of her allowance to me as you can on the tax web page 

should I ask to have this cxld and will pay more tax or less tax?  


waited to chat some on chat yesterday but got no one 

Dazed_and_C0nfused

From what you have posted it sounds like your wife has applied for Marriage Allowance without understanding the consequences.  And as a result she has made herself liable to tax (or more tax).

But before jumping in and changing anything you really need to consider the impact on both of you.

For example would your wife be happy paying say £100 in tax for a particular tax year if it saved you £200 for that tax year?  Or would you give her £100 of your refund to keep her happy?

So first thing I would do is look at the figures for both of you for each year and see what you have gained compared to what she has to pay.  Then you will be much better informed.

And maybe she needs to take more care before applying for things in future or at least understand the consequences first.

aayush

Dazed_and_C0nfused said:

From what you have posted it sounds like your wife has applied for Marriage Allowance without understanding the consequences.  And as a result she has made herself liable to tax (or more tax).

But before jumping in and changing anything you really need to consider the impact on both of you.

For example would your wife be happy paying say £100 in tax for a particular tax year if it saved you £200 for that tax year?  Or would you give her £100 of your refund to keep her happy?

So first thing I would do is look at the figures for both of you for each year and see what you have gained compared to what she has to pay.  Then you will be much better informed.

And maybe she needs to take more care before applying for things in future or at least understand the consequences first.

we though i would be a good idea as per the tv adds 

I am on £23k year and she gets paid hourly around 10 pounds ahour 

Dazed_and_C0nfused

So you should be able to get the maximum benefit, the key thing will be to check each of her calculations (has she received a P800 or PA302 for each tax year she applied for?) and see what she has to pay back per tax year.

Then compare that with your calculations.

p00hsticks

An underpayment of £600 sounds a lot if it's due to Marriage Allowance, unless it's going back over multiple years. At worst it should only increase someones tax liabilty by £352, the same amount as the other member of the marriage saves.   

OP, are you sure it's not that HMRC have adjusted her tax code by 600 ? If you can post what her tax code is, how much she earns over the year and exactly what the letter says about the payment we may be able to work out what's going on.

Dazed_and_C0nfused

p00hsticks said:

An underpayment of £600 sounds a lot if it's due to Marriage Allowance, unless it's going back over multiple years. At worst it should only increase someones tax liabilty by £352, the same amount as the other member of the marriage saves.   

OP, are you sure it's not that HMRC have adjusted her tax code by 600 ? If you can post what her tax code is, how much she earns over the year and exactly what the letter says about the payment we may be able to work out what's going on.

I suspect the spouse has made backdated applications so the £600 covers more than one year.  The more years the better really for the op as there will be a better chance of their refund exceeding that.

Op really needs to put more meat on the bones though otherwise it is all guesswork and assumptions.

aayush

wife tax code is 1131N

aayush

heading of the letter says 
tax calculation for tax 2020 to 2021 you have paid to little tax  you owe HMRC £570.00
earned £15114.93 at supermart
earned £2850. at Beaut paul 
 income tax 947.00

allowance is £12,500

tax able income is 5464.93

basic rate tax 20% income 6714         income tax  1342.80

plus other adjustments  £174.20        income tax  174.20

total tax payable  £1517.00
tax paid                £947.00

you owe  HMRC  £570.00


how?
.

aayush

she left beauty job now only job is at super market 

p00hsticks

So she is earning over the standard tax allowance (£12500 in 2020-21, £12570 for 2021-22) in her supermakrket job, which means that any of her allowance she gives to you via Marriage Allowance to reduce your tax bill will result in a corresponding increase in hers. As a couple you've not lost out, but she's paying more tax and you're paying less.

Marriage Allowance is only beneficial if one of the partners is earning under the standard tax allowance, and in your case neither of you are.

chrisbur

As advised earnings a lot higher than you first indicated but that does not seem to account for all of the extra tax.  There seems to me to be some problem with the tax deductions during the year.  Can you advise from last payslip or P60 from each job what the taxable gross tax paid and tax code was.