Married couples allowance - cancellation issue

Hainsie

So, as my wife is now a tax payer due to the threshold not being raised, We have gone onto HMRC page to advise them of this as good citizens so as to pay tax accurately for the 24/25 tax year. System has noted this and applied it, but it wont take effect until the next tax year 25/26. Why can they adjust it now? I would like to be up to date with our tax codes.

sheramber

After you cancel

If you cancel because of a change of income, the allowance will run until the end of the tax year (5 April).

https://www.gov.uk/marriage-allowance/if-your-circumstances-change

Hainsie

Thanks yes. crazy. Why cant it be applied now?

molerat

Because that is not how it works, as with all things tax it is done within the relevant regulations.  We decided we no longer wanted the swap so MrsM cancelled it before the end of the year to take effect this year.  But with most couples it makes little difference, one pays £252 more tax and the other £252 less.

p00hsticks

Being pedantic (but they are two completely different allowances), I suspect your title should refer to 'Marriage Allowance', rather than the more archaic 'Married Couples Allowance' that is only available to couples where one is aged 89 or over and which is not dependent on  income ....