Marriage Allowance Tax Year 2022-2023 Not Transferred

MyAccount

We are both Scottish Tax Payers

Our Marriage Allowance was transferred from my wife to me in 2021-22 but NOT automatically transferred in 2022-23

1) Am I correct in thinking if the Marriage Allowance is transferred in 2022-23 my wife might pay a little amount of tax but I would benefit more?

2)I'm curious why the Marriage Allowance didn't automatically transfer in 2022-23?

WIFE TAX CALCULATION FOR 2022-23 SELF ASSESSMENT

Dividends from foreign companies £713.00

Savings Interest £1,181.00

UK Dividends £2,278.00

UK pensions and state benefits £10,513.00

Total income received £14,685.00

minus Personal Allowance £12,570.00

Total income on which tax is due £2,115.00

WIFE HMRC INCOME TAX CALCULATION

Savings interest

Starting rate £115.00 x 0% £0.00

Basic rate band at nil rate £0.00 x 0% £0.00

Basic rate £0.00 x 20% £0.00

Higher rate band at nil rate £0.00 x 0% £0.00

Higher rate £0.00 x 40% £0.00

Additional rate £0.00 x 45% £0.00

Income Tax charged after allowances and reliefs £0.00

Income Tax due £0.00

HUSBAND TAX CALCULATION FOR 2022-23 SELF ASSESSMENT

Savings Interest £800.00

UK Dividends £1,140.00

UK pensions and state benefits £20,215.00

Total income received £22,155.00

minus Personal Allowance £12,570.00

Total income on which tax is due £9,585.00

HUSBAND HMRC INCOME TAX CALCULATION

Pay, pensions, profit etc. (Scottish income tax rate).

Starter rate £2,162.00 x 19% £410.78

Basic rate £5,483.00 x 20% £1,096.60

Intermediate rate £0.00 x 21% £0.00

Savings interest

Basic rate band at nil rate £800.00 x 0% £0.00

Basic rate band at nil rate £0.00 x 0% £0.00

Basic rate £0.00 x 20% £0.00

Higher rate band at nil rate £0.00 x 0% £0.00

Higher rate £0.00 x 40% £0.00

Additional rate £0.00 x 45% £0.00

Income Tax due after allowances and reliefs £1,507.38

Income Tax due £1,507.38

Many thanks

Dazed_and_C0nfused

What happened to the missing £2,000 from your wife's calculation?

Did she actually apply for Marriage Allowance for 2022-23?

[Deleted User]

Dazed_and_C0nfused said:

What happened to the missing £2,000 from your wife's calculation?

Did she actually apply for Marriage Allowance for 2022-23?

Dividend allowance and savings allowance ? 

Would be nice if shown on the calculation though!

MyAccount

Yes the £2000 is the dividend allowance. I copied the calculations from the Self Assessment which I agree isn't very clear.

1) Am I correct in thinking if the Marriage Allowance is transferred from her to me in 2022-23 my wife might pay a little amount of tax but I would benefit more?

2)I'm curious why the Marriage Allowance didn't automatically transfer in 2022-23?

Dazed_and_C0nfused

MyAccount said:

Yes the £2000 is the dividend allowance. I copied the calculations from the Self Assessment which I agree isn't very clear.

1) Am I correct in thinking if the Marriage Allowance is transferred from her to me in 2022-23 my wife might pay a little amount of tax but I would benefit more?

2)I'm curious why the Marriage Allowance didn't automatically transfer in 2022-23?

1.  Not based on the income figures you have provided (she would be taxed but all at 0%).

2.  Did she actually apply for Marriage Allowance for 2022-23?

MyAccount

Hi Dazed_and_C0nfused

Thanks

1) So even with the reduced personal allowance she won't have any tax to pay?

2) She applied to transfer the Marriage Allowance from her to me in 2021-22 giving me the benefit of the extra allowance to reduce my tax bill. I was expecting HMRC to keep automatically transferring the Marriage  Allowance every tax year until it she stops it, which she hasn't.

Dazed_and_C0nfused

MyAccount said:

Hi Dazed_and_C0nfused

Thanks

1) So even with the reduced personal allowance she won't have any tax to pay?

2) She applied to transfer the Marriage Allowance from her to me in 2021-22 giving me the benefit of the extra allowance to reduce my tax bill. I was expecting HMRC to keep automatically transferring the Marriage  Allowance every tax year until it she stops it, which she hasn't.

1.  No, my maths was wrong 😥.  I think she'll have about £17 to pay (plus any late payment interest) as nearly £200 of dividends will be taxed above the dividend nil rate.

2.  If she applied on her 2021-22 Self Assessment return I thought that only applies for that one year, not going forward.

MyAccount

Hi Dazed_and_C0nfused

Many thanks

sheramber

If you clsim thorugh the Govr.uk  website it will automatically be carried forward each year.
https://www.gov.uk/marriage-allowance/how-to-apply

MyAccount

Thanks sheramber. I'll try claiming that way.

Dazed_and_C0nfused

MyAccount said:

Thanks sheramber. I'll try claiming that way.

You can't "claim" Marriage Allowance, I presume you will ask your wife to apply for it 😉