Can I cancel my Marriage Allowance application?

ClaraSolis

So this might be a bit of a weird question...

I am in the process of doing my self assessment for 2021-2022 with an accountant. I was part employed through that year, lost my job and then had some income through self-employment. After all expenses were taken into account, the accountant said my total income received for the tax year would be £12,334.00.

This is just below the amount for the Marriage Allowance, so I thought it might be best for me to apply for it. I sent through the application today, only to have my accountant call me up a few minutes later to say that this would increase the amount I have to pay to HMRC by over £220 or something similar (I wasn't aware/had forgotten that it would increase my personal allowance). Of course by this point it was too late as I had already sent it off (darn me for being pro-active for once rather than procrastinating!  ). 

I called HMRC to see if maybe I could cancel my application, but the guy on the other side said that it's already gone through and has been approved (not sure how it can be so quick). There is no option in my Gov.uk account to cancel it. He said that my husband would have to call them up to reject the Marriage Allowance, but to be honest he didn't really seem that confident about any of this. 

Does anyone know if there is a way to cancel the application for a previous tax year? 
Or would I be best to just keep it? I am unsure what exactly happens. The guy said it would lower my tax code and increase my husband's tax code, but I have no clue if that's right. Or would we simply receive a cheque in the post for £252?
I need to figure this out urgently as we are about to submit my tax form for self assessment before the 31 Jan deadline, but I need to fill in the section for Marriage Allowance on there if we are claiming it. 

Thanks!

Dazed_and_C0nfused

HMRC don't "approve" Marriage Allowance, you are either eligible or not.

You will no doubt be able to cancel it but if your spouse is going to get a refund of ~£252 then you are still, as a couple, better off.

Nothing can ever change the tax code for a previous tax year.

Is your spouse completing a Self Assessment return as well?

ClaraSolis

Dazed_and_C0nfused said:

HMRC don't "approve" Marriage Allowance, you are either eligible or not.

You will no doubt be able to cancel it but if your spouse is going to get a refund of ~£252 then you are still, as a couple, better off.

Nothing can ever change the tax code for a previous tax year.

Is your spouse completing a Self Assessment return as well?

Sorry, that's the term the HMRC person used, he said my application had already gone through. 

I have to double check with the accountant what the increase was on what I have to pay now, but it would either be a very low profit or a small loss either way, I just thought it might be better to cancel it so there's less hassle (me having to pay higher tax now, then having to try and find a bank to deposit a cheque somewhere, which is an issue when you don't drive). 

Again, the HMRC person didn't really seem to know what they were talking about as they said our tax codes would change. 

No, he's in full-time employment and doesn't do a self assessment, has never done one either. It's my first time completing one and obviously I still have a lot to learn haha.

Dazed_and_C0nfused

ClaraSolis said:

Dazed_and_C0nfused said:

HMRC don't "approve" Marriage Allowance, you are either eligible or not.

You will no doubt be able to cancel it but if your spouse is going to get a refund of ~£252 then you are still, as a couple, better off.

Nothing can ever change the tax code for a previous tax year.

Is your spouse completing a Self Assessment return as well?

Sorry, that's the term the HMRC person used, he said my application had already gone through. 

I have to double check with the accountant what the increase was on what I have to pay now, but it would either be a very low profit or a small loss either way, I just thought it might be better to cancel it so there's less hassle (me having to pay higher tax now, then having to try and find a bank to deposit a cheque somewhere, which is an issue when you don't drive). 

Again, the HMRC person didn't really seem to know what they were talking about as they said our tax codes would change. 

No, he's in full-time employment and doesn't do a self assessment, has never done one either. It's my first time completing one and obviously I still have a lot to learn haha.

What you need to consider is are you happy paying £220 so your spouse can get a tax refund of ~£250?

You are deliberately paying £220 more tax than you need to so you could save yourself £220.

But in return your spouse wouldn't get a £252 tax reduction.

If you applied on an ongoing basis then your spouse's current tax code will get updated and you will have a lower Personal Allowance when you come to file your 2022:23 tax return.

But if you have only applied for 2021:22 then it is a one year only thing.

sheramber

ClaraSolis said:

Dazed_and_C0nfused said:

HMRC don't "approve" Marriage Allowance, you are either eligible or not.

You will no doubt be able to cancel it but if your spouse is going to get a refund of ~£252 then you are still, as a couple, better off.

Nothing can ever change the tax code for a previous tax year.

Is your spouse completing a Self Assessment return as well?

Sorry, that's the term the HMRC person used, he said my application had already gone through. 

I have to double check with the accountant what the increase was on what I have to pay now, but it would either be a very low profit or a small loss either way, I just thought it might be better to cancel it so there's less hassle (me having to pay higher tax now, then having to try and find a bank to deposit a cheque somewhere, which is an issue when you don't drive). 

Again, the HMRC person didn't really seem to know what they were talking about as they said our tax codes would change. 

No, he's in full-time employment and doesn't do a self assessment, has never done one either. It's my first time completing one and obviously I still have a lot to learn haha.

You can pay cheques into many banks at the Post Office.

You can post a cheque to your bank . You may need to ask the bank for an envelope to do this.

HMRC can pay direct to your bank account if they have the information.