Marriage Allowance Tax question

2pints

My wife has been claiming Marriage Allowance for a few years now when I was earning under the tax limit, I'm now above that limit (have been for the last 2 years) and my wife is also over and into the higher tax rate (Scottish rate for a year or so but now national rate)but our tax codes are both showing as getting the allowance.When she goes into the Gov portal, it shows how much she saved (or whatever you call it) and hasn't been flagged up at all.

Is this something that we should do or just leave as is.

My tax code is 1137N whilst the standard is higher than that, while we see any benefit if the codes are changed?

Cheers

Dazed_and_C0nfused

I think you've got a bit confused.

My wife has been claiming Marriage Allowance for a few years now when I was earning under the tax limit, 

You cannot claim Marriage Allowance, do you mean you applied for it so your wife got the benefit as the recipient?

but our tax codes are both showing as getting the allowance

There have been a lot of posts about Marriage Allowance on here but that's a new one.

My tax code is 1137N whilst the standard is higher than that, while we see any benefit if the codes are changed?

A tax code with an N suffix means you aren't receiving Marriage Allowance, it shows you are the applicant i.e. you have a lower Personal Allowance due to applying for Marriage Allowance.

You need to look at each tax year independently.  I think it's highly unlikely that you wouldn't have got the allowance back if your wife was higher rate payer for a particular tax year.

Have either of you had tax calculations for any year(s) showing tax underpaid or overpaid?

2pints

Dazed_and_C0nfused said:

I think you've got a bit confused.

My wife has been claiming Marriage Allowance for a few years now when I was earning under the tax limit, 

You cannot claim Marriage Allowance, do you mean you applied for it so your wife got the benefit as the recipient?

but our tax codes are both showing as getting the allowance

There have been a lot of posts about Marriage Allowance on here but that's a new one.

My tax code is 1137N whilst the standard is higher than that, while we see any benefit if the codes are changed?

A tax code with an N suffix means you aren't receiving Marriage Allowance, it shows you are the applicant i.e. you have a lower Personal Allowance due to applying for Marriage Allowance.

You need to look at each tax year independently.  I think it's highly unlikely that you wouldn't have got the allowance back if your wife was higher rate payer for a particular tax year.

Have either of you had tax calculations for any year(s) showing tax underpaid or overpaid?

Cheers for reply, didn't know how to word it properly hence errors in it. Would it not have flagged up with the tax code when my wife earned the upper tax and revert back to a normal tax code or is it something that we have to do?

Dazed_and_C0nfused

Because things can often change during the year HMRC only cancel it when they review things after the tax year ends.

Has there been a tax year where your wife was definitely a higher rate payer?

If it was 2021:22 then it's probably too early for them to have checked everyone's position for last year yet.

https://www.gov.uk/tax-overpayments-and-underpayments

For any complete tax year she was higher rate you should get the benefit of the full Personal Allowance i.e. she could get a bill whilst you get a refund.