Marriage allowance/Self assessment

cossie1990

Hi all,

Just a quick question, I have just about crept into the HICB tax charge for financial year 22/23 and am familiarising myself with the self assessment. It seems fairly straight forward but on the calculation page the calculated tax due seems a little higher than what I worked out. I think it is because it is using the default £12,570 personal allowance when in reality it was £13,830 due to marriage allowance.

I can't figure out how to amend this, I've had a look at some of the HMRC forums and it is suggested to submit it and it will be amended upon review, is this correct? I would like to see what the final amount is prior to submission, I would imagine it is much closer to what I estimated but I just want to be fairly cautious due to it being my first time.

Also, as a side note - is the tax payable up fron or will they just adjust your tax code? In all honesty it's pretty insignificant so I'd like to pay it off in a oner, is that an option?

Thank you!

Dazed_and_C0nfused

No one can have a Personal Allowance greater than £12,570.

All Marriage Allowance does is entitle you to a deduction of your tax liability, worth £252 in the current and previous tax year.

Does the calculation show you have any income being taxed at 40%?

If you have included any dividend income on the return what is the description of how is this being taxed?

There is a box you can tick near the end of the return of you don't want any tax owed to be included in your 2024-25 tax code.

cossie1990

https://forums.moneysavingexpert.com/discussion/comment/80028213#Comment_80028213

Yes, a very small amount at 40% which is where I believe the difference in my calcs are.

No other income whatsoever.

Ahh yes think I seen that box, thanks!

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/80028225#Comment_80028225

Unfortunately that means you are no longer eligible for Marriage Allowance.

As it is a very small amount you may wish to give the Gift Aid section of the return and accompanying notes a thorough read as that may save the day.

This assumes you haven't actually filed the return yet. If you have then it's too late for that to help

cossie1990

https://forums.moneysavingexpert.com/discussion/comment/80028239#Comment_80028239

Dang, they don't make it easy.

Am I right in assuming now that I have likely underpaid tax for the year and I can expect a letter through the post once they have reconciled it at their end? I am assuming my tax code will change when they pick it up for this year but I would like it sooner rather than later so that it doesn't accrue!

[Deleted User]

https://forums.moneysavingexpert.com/discussion/comment/80028248#Comment_80028248

Perhaps you missed Dazed's last post. The gift aid carry back from this tax year to 2022/23 could be very useful - but you must do this before filing the return.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/80028248#Comment_80028248

HMRC don't reconcile anything.

The liability will be based on your own Self Assessment.

If HMRC don't like the look of your return for any reason and think it's wrong they will open an enquiry (investigation) into it.

As I understand it submitting a return which shows you aren't eligible for Marriage Allowance will mean HMRC will cancel Marriage Allowance for the current tax year which will result in an amended tax code for 2023-24.

r6mile

As others have said, as HICBC is paid via self assessment. If you are very close to the 50,270 threshold, it might be worth making a gift aid charity donation (which can be treated as if made in 22/23 even if paid now) to keep you below. This will retain your marriage allowance - and of course save you on HICBC which will be £0 if you go below 50,099.

I wish I had known about marriage allowance before as I was very close in both 20/21 and 21/22 and could have managed to stay below threshold with a tiny bit of planning…

Jeremy535897

https://forums.moneysavingexpert.com/discussion/comment/80028348#Comment_80028348

They also said that the gift aid donation must be made before the 2022/23 self assessment tax return is submitted.

BreakingGlass

Dazed_and_C0nfused said:

https://forums.moneysavingexpert.com/discussion/comment/80028248#Comment_80028248

HMRC don't reconcile anything.

The liability will be based on your own Self Assessment.

If HMRC don't like the look of your return for any reason and think it's wrong they will open an enquiry (investigation) into it.

As I understand it submitting a return which shows you aren't eligible for Marriage Allowance will mean HMRC will cancel Marriage Allowance for the current tax year which will result in an amended tax code for 2023-24.

So what about this situation:

• Someone has claimed marriage allowance for the current 23/24 tax year (i.e 'transferred' £1260 to their partner) because at the point of application they were a non-taxpayer, whereas their partner is a basic rate taxpayer.

• Then their savings interest increases to the point where they will pay tax (i.e savings interest greater than £17310 (£18570 minus £1260)).

When submitting the inevitable tax return, will HMRC cancel Marriage Allowance, and if so from when?

Dazed_and_C0nfused

BreakingGlass said:

Dazed_and_C0nfused said:

https://forums.moneysavingexpert.com/discussion/comment/80028248#Comment_80028248

HMRC don't reconcile anything.

The liability will be based on your own Self Assessment.

If HMRC don't like the look of your return for any reason and think it's wrong they will open an enquiry (investigation) into it.

As I understand it submitting a return which shows you aren't eligible for Marriage Allowance will mean HMRC will cancel Marriage Allowance for the current tax year which will result in an amended tax code for 2023-24.

So what about this situation:

• Someone has claimed marriage allowance for the current 23/24 tax year (i.e 'transferred' £1260 to their partner) because at the point of application they were a non-taxpayer, whereas their partner is a basic rate taxpayer.

• Then their savings interest increases to the point where they will pay tax (i.e savings interest greater than £17310 (£18570 minus £1260)).

When submitting the inevitable tax return, will HMRC cancel Marriage Allowance, and if so from when?

It's being liable to higher rate tax which makes you ineligible so if they only have taxable income of say £20,000 then the Marriage Allowance application will remain in place and the applicants liability calculated with a Personal Allowance of £11,310.