Scottish Tax -Marraige allowance

cheepskate_2

Hope I'm in the correct forum 
Just checking online via the portal for our tax.

Hubby receives the full marriage allowance from me and is under the Scottish 41% income. 

****Online via our portal, it states from the years 2016-2020 Higher earner, not eligible for Marraige allowance.

When I check the tax code for the above years  it does add in the allowance (of £610) so, non taxable allowances would be £610 less than actual tax code. 

Upon querying this the  girl says that Scotland only puts the £610 onto the code but this is the full amount? ??something to do with how the tax is calculated (for everybody, not just for us) 

Also she said that each year Ihubby  was getting the full marriage allowance but could not explain why the online tool says he was not.

Anybody got the same and know the answer
Thanks 

Dazed_and_C0nfused

£610 x 41% = £250, which is presumably the Marriage Allowance tax credit for one of the years involved.

I think HMRC provisionally allow Marriage Allowance in a tax code and then cancel it if the end of tax year calculation shows they definitely were liable to higher rates tax.

Have you got his P60's for those years and did the final tax code used (the one on the P60) have an M suffix i.e. S1315M?

Did he complete Self Assessment returns for any of the tax years you are questioning?

cheepskate_2

Thanks
I don't understand the 41% you have used in the calculation as he is a 21% tax payer....is there a different reason for this? 
He is a total PAYE . No other income .

Will need to look out the p60's later. 

The girl at the tax office that I called confirmed that he is a 21% payer , that he was getting full marriage allowance but couldn't answer why it says he is a higher payer.

cheepskate_2

Meant to say.

When we look at the  online portal each year has a M suffix(apart from 20/21) where we were a 41% payer , which doesn't have the M. 

We have called prior about the £610, where we were told it was a depreciating amount  based on our income.
More income we have , less amount we get. This was incorrect as it's either  you get it or you don't. 

Dazed_and_C0nfused

Either you got a terrible adviser or you have misunderstood.

Marriage Allowance is a fixed amount, there is no sliding scale.

For the current tax year it is worth £252.

The tax code entry tries to ensure the correct amount (£252 or equivalent depending on the tax year involved) is given during the year.

Which tax years do you think there might be a problem with?

cheepskate_2

At the moment 
2016-2020.
When I go online to the portal , it tells me " Higher earner, not eligible for marriage allowance. "

We have claimed for those years and I have the M suffix for each of those years when I check online 

Due to a re-calculation our 2021/22 is not online atm. 

sheramber

The statement about higher rate may be a heading for  the tax year 20/21 but it shows at the top of all years as it is an overall heading, not an individual year one.

A 21% taxpayer in Scotland does require a restriction in their coding notice as relief will be given at 21% instead of 20% . I cannot find any examples of how this is done.

Can you copy exactly what the coding information says? That may or may  not clarify things
 things.

molerat

A 21% tax payer will get £1200 added to their code and a 19% tax payer £1326/7? instead of the usual £1260.

There used to be an HMRC page giving the details but I can't find it now.

edit: found it.  It is an up to date page but uses old figures as example.

Recipient Coding adjustments for 2018-19

A recipient who is not Scottish and a Scottish customer who is liable to tax at the Scottish basic rate will receive an increase of 1190 in their code number. This will reduce their tax by £238 (1190 x 20%).

Scottish customers who are liable to tax at the starter rate will see their code number increase by 1253. This will reduce their tax liability by £238 (1253 x 19%).

Scottish customers who are liable to tax at the intermediate rate will see their code number increase by 1134. This will reduce their tax liability by £238 (1134 x 21%).

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye13112

Dazed_and_C0nfused

The £610 scenario seems to be a Scottish phenomenon, designed to limit the potential tax owed to the standard amount of Marriage Allowance.

Given provisionally at higher rates but will be cancelled if the recipient actually is higher rate once the tax year is reviewed after 5 April.

Have never known anyone post about it other than Scottish taxpayers.

I suspect everyone else gets the standard tax code allowance, currently £1,260, and if they end up being higher rate owe a lot more than a Scottish taxpayer in the same situation would!

sheramber

So the taxpayer whom is not liable to higher rates should get a refund as they did not get the full benefit.

Dazed_and_C0nfused

Yes, they would most likely have received a fraction over half the actual amount due (being a Scottish intermediate rate payer).