Marriage tax allowance - 'taxable' income

Strummer22

Hi,

I just filled in (but not yet submitted) my self-assessment tax return for 22-23 and, as planned, my pension and gift aid contributions keep me in the basic rate band.

We thought my wife had previously transferred part of her allowance to me - but it's not showing on my return. I can't remember whether we cancelled in because we thought I'd be higher rate, or HMRC has cancelled it because my pre-tax income is several thousand over £50,270 - whatever, she has just been online to re-apply to transfer. 

The form asks for my pre-tax income, but not my taxable income. As noted above my pre-tax income at first sight excludes us from claiming marriage allowance. My question is: will HMRC outright deny the application, or will they ask further questions?

edit I think I’ve used the wrong term - is it adjusted net income that matters? Anyway, the question remains the same

Dazed_and_C0nfused

Taxable income is irrelevant for Marriage Allowance.

If you aren't a higher rate payer and the dividend nil rate band isn't stopping you from being one then you are eligible.

I thought the credit due (as recipient) wasn't included until after submitting the return but I may be out of touch there.

[Deleted User]

Dazed_and_C0nfused said:

Taxable income is irrelevant for Marriage Allowance.

If you aren't a higher rate payer and the dividend nil rate band isn't stopping you from being one then you are eligible.

I thought the credit due (as recipient) wasn't included until after submitting the return but I may be out of touch there.

You are correct. There is only a section to apply to transfer marriage allowance (although why, in that instance, one needs a tax return is open to debate). The credit for a recipient appears in the tax calculation.

Strummer22

Dazed_and_C0nfused said:

Taxable income is irrelevant for Marriage Allowance.

If you aren't a higher rate payer and the dividend nil rate band isn't stopping you from being one then you are eligible.

I thought the credit due (as recipient) wasn't included until after submitting the return but I may be out of touch there.

Thanks. I hadn’t considered the dividends, I get more than £2k so pay basic rate tax on the amount above £2k. How can I be certain whether the dividend nil rate is preventing me being a higher rate payer?

The marriage allowance does not appear on my return at present. I do not know if this is because I’m not eligible, or just hasn’t been applied, so I’m trying to determine the best way of figuring that out and getting the marriage tax allowance, if we’re entitled to it. 

Dazed_and_C0nfused

Strummer22 said:

Dazed_and_C0nfused said:

Taxable income is irrelevant for Marriage Allowance.

If you aren't a higher rate payer and the dividend nil rate band isn't stopping you from being one then you are eligible.

I thought the credit due (as recipient) wasn't included until after submitting the return but I may be out of touch there.

Thanks. I hadn’t considered the dividends, I get more than £2k so pay basic rate tax on the amount above £2k. How can I be certain whether the dividend nil rate is preventing me being a higher rate payer?

The marriage allowance does not appear on my return at present. I do not know if this is because I’m not eligible, or just hasn’t been applied, so I’m trying to determine the best way of figuring that out and getting the marriage tax allowance, if we’re entitled to it. 

I think it would show something like £x taxed at 0% in the higher rate band on your calculation.