Self-assessment marriage allowance

Strummer22

Hi,

My wife transfers the marriage allowance to me, and this is taken into account in my tax code (i.e. it ends in M). We've done this since this tax break became available however many years ago. My wife files self-assessment returns, and she says the marriage allowance should have been a one-time thing so she didn't put it on her self-assessment for 20-21.

Until tax year 20-21 I was on PAYE. I decided to do self-assessment for 20-21 onwards as:

1) I started receiving some income as a taxable dividend;

2) My total income slightly exceeded £50k and:

    a) My charitable giving is over £3k and my understanding is that I can claim back any higher rate paid on gift aid donations; and

    b) I might have been liable to pay back some child benefit, but that turns out not be the case because of a).

There was no option on my return to state that my wife has transferred some of her allowance to me. Apparently I owe HMRC (more than just the marriage allowance difference, but I think it's because I will overpay via PAYE in 21-22 so should balance out) - but some of it is the marriage allowance. My wife has already submitted her 20-21 return. How can we get this taken into account in my self-assessment return?

Dazed_and_C0nfused

My wife files self-assessment returns, and she says the marriage allowance should have been a one-time thing so she didn't put it on her self-assessment for 20-21.

Does she make the rules for HMRC?

I cannot see anything on the paper version of the tax return (SA100 on gov.uk) to suggest she shouldn't have included the claim on her return.

There was no option on my return to state that my wife has transferred some of her allowance to me

And a good thing that is.  Otherwise you could deliberately make your wife pay more tax than was necessary.  The whole concept of Marriage Allowance is that it is the transferor who has to apply.  If they make themselves liable to tax as a result then that is down go them but you, as the recipient, can't put them in that position.

Maybe your wife would like to amend her return? 

Strummer22

Dazed_and_C0nfused said:

My wife files self-assessment returns, and she says the marriage allowance should have been a one-time thing so she didn't put it on her self-assessment for 20-21.

Does she make the rules for HMRC?

I cannot see anything on the paper version of the tax return (SA100 on gov.uk) to suggest she shouldn't have included the claim on her return.

There was no option on my return to state that my wife has transferred some of her allowance to me

And a good thing that is.  Otherwise you could deliberately make your wife pay more tax than was necessary.  The whole concept of Marriage Allowance is that it is the transferor who has to apply.  If they make themselves liable to tax as a result then that is down go them but you, as the recipient, can't put them in that position.

Maybe your wife would like to amend her return? 

Thanks, I'm new to self-assessment and definitely appreciate the snark, I mean, advice.

So based on this it looks like HMRC only need to be notified once if marriage allowance is to be transferred via PAYE, but every year if the partner is using self-assessment.

Dazed_and_C0nfused

Yes, when completing a Self Assessment return you need to complete each section that is applicable.

Jeremy535897

Your wife should complete the self assessment tax return each year showing that the marriage allowance is to be transferred to you. However, marriage allowance is normally only cancelled if an online form is completed by your wife (using the government gateway) or if your wife telephones HMRC: https://www.gov.uk/marriage-allowance/if-your-circumstances-change

You say that your wife has completed self assessment returns in the past, and you have enjoyed the benefit of the marriage allowance for many years, so as she presumably only filled in the relevant boxes in the first year of the claim, I don't see why things have changed now.

Your post does not state whether your 2020/21 code has an M at the end. Your completing a self assessment tax return does not change you from being on PAYE for your job (which your post implies).

Strummer22

Your post does not state whether your 2020/21 code has an M at the end. Your completing a self assessment tax return does not change you from being on PAYE for your job (which your post implies).

Yes my code ends in M.

I know I will still be on PAYE. I'll get my wife to amend her return, I hope this is a straightfoward process.

Jeremy535897

If your code ends in M you are still receiving marriage allowance, so I am not clear why your wife amending her return will alter anything?

Dazed_and_C0nfused

As i understand it the op has t received the Marriage Allowance tax deduction in their own Self Assessment calculation.

I'm assuming the op is aware they don't get any extra allowances, just a tax deduction (which is shown towards the end of the calculation).

sheramber

I think what the OP means is the he has completed a self assessment form for 20/21 and the calculation has resulted in an underpayment.

He cannot see anywhere on the return to confirm he receives marriage allowance and no allowance has been given in the SA calculation.

Since the allowance has been given in his code for that year the result is that part if the underpayment on SA is due to no  marriage allowance.

Am I right in thinking that the marriage allowance is not included in the calculation but is given as a separate credit which will shown on the statement of account?

Jeremy535897

sheramber said:

I think what the OP means is the he has completed a self assessment form for 20/21 and the calculation has resulted in an underpayment.

He cannot see anywhere on the return to confirm he receives marriage allowance and no allowance has been given in the SA calculation.

Since the allowance has been given in his code for that year the result is that part if the underpayment on SA is due to no  marriage allowance.

Am I right in thinking that the marriage allowance is not included in the calculation but is given as a separate credit which will shown on the statement of account?

That is correct.

Dazed_and_C0nfused

I thought it was a tax deduction within the tax calculation.