Marriage allowance self employed

Dh6

Hi all. 

Both my wife and I are self employed,  for the last few years my wife hasn’t used up her full tax free income allowance whereas I have. 

I am a basic rate tax payer but my wife earns between 8-10k ish from her part time job so only pays national insurance.

Our incomes fluctuate year to year with being self employed.

How do we go about applying for the marriage tax allowance if indeed we are eligible?

Many thanks.

DH

[Deleted User]

Your wife makes the ‘claim’ to transfer. The relevant section is towards the end of the tax return, paper copy attached.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/975548/sa100-2021.pdf

It can also be claimed using this service - it will ask if she wishes to transfer fir previous years.
https://www.gov.uk/apply-marriage-allowance

Dh6

Many thanks, We’ve already submitted our tax returns for 20/21, will this have any affect on our claim? Thanks DH

[Deleted User]

Dh6 said:

Many thanks, We’ve already submitted our tax returns for 20/21, will this have any affect on our claim? Thanks DH

Why not have your wife amend hers? She has exactly one year so to do.

Dh6

It’s up to me to sort it all out as my wife’s not interested in saving money, it’s the spending she enjoys! 

How many previous tax years are we able to claim for please?

Regards DH

[Deleted User]

Four plus the current year. You can amend your wife’s 2020/21 return (and 2019/20 before midnight). 

Dazed_and_C0nfused

The earliest tax year, 2017:18, she can apply for is a long time ago now so I would suggest she (you?) actually checks her calculations for the earlier tax years before doing anything else.

There are two important elements to Marriage Allowance, eligibility and being able to benefit from (as a couple).

HMRC check eligibility but not whether you (as a couple) benefit or not.

Two people both earning say £40k are eligible but it would be very unusual for there to be any benefit from applying.  Normally one would get a refund for say £230 and the other person would get a bill for £230 (plus interest if in Self Assessment).

Dh6

Our tax returns have already been submitted via our account.

I’m a basic rate taxpayer DazedandConfused and my wife doesn’t use her full personal allowance which makes it beneficial for us to claim the marriage allowance I believe. 

So is it 17/18 tax year that were able to go back to? 

Also, assuming we are successful would I be reimbursed via a cheque or through my tax code?

Many thanks DH

Dazed_and_C0nfused

In 2017:18 someone with taxable earnings/pension of £11,499 doesn't use their full Personal Allowance.

But apply for Marriage Allowance and they give themselves a bill for £229.80 whilst the recipient gets a tax reduction of £230.00

The time limit for amending returns earlier than 2020:21 has passed now (strictly just a few minutes left for 2019:20) so normally the only way to change anything is to make a claim for overpayment relief however she isn't actually claiming an overpayment so not quite sure what the procedure is in this scenario?

I would suggest she calls HMRC to check how this needs to be done.  She has until 5 April 2022 before 2017:18 is completely rules out.

Also, there is nothing you can do, the recipient cannot "claim" Marriage Allowance, the person agreeing to the reduced Personal Allowance has to apply.

sheramber

Dh6 said:

Our tax returns have already been submitted via our account.

I’m a basic rate taxpayer DazedandConfused and my wife doesn’t use her full personal allowance which makes it beneficial for us to claim the marriage allowance I believe. 

So is it 17/18 tax year that were able to go back to? 

Also, assuming we are successful would I be reimbursed via a cheque or through my tax code?

Many thanks DH

If you are self employed you do not have a tax code. Your tax is assessed through your self employment.

[Deleted User]

sheramber said:

Dh6 said:

Our tax returns have already been submitted via our account.

I’m a basic rate taxpayer DazedandConfused and my wife doesn’t use her full personal allowance which makes it beneficial for us to claim the marriage allowance I believe. 

So is it 17/18 tax year that were able to go back to? 

Also, assuming we are successful would I be reimbursed via a cheque or through my tax code?

Many thanks DH

If you are self employed you do not have a tax code. Your tax is assessed through your self employment.

I am a little confused as to how much of wife’s personal allowance is available to transfer if she is self-employed and also earns 8-10k from her part time job.