HMRC rejected our claim for Marriage Allowance transfer

Oberfeldwebel

I hope someone here can advise about Marriage allowance transfer.

We moved to the UK in June 2020, I started working in August 2020, and have been in a full-time employment since then. We got NINo in October 2020. My wife didn't work until April 2022.

My wife sent a claim for Marriage Allowance transfer last month, and today got a letter from HMRC saying that there is no financial benefit for either partner to receive Marriage Allowance.

She tried to backdate and transfer 10% of her Personal Tax Allowance to me, for tax years 2020/21 and 2021/22, since I was the higher earner (intermediate rate in Scotland) and she didn't work for 2 years.

I don't understand why the reason for rejecting my claim is the following:

"No Tax to pay for the years claimed.

We will not change your records for the tax years 2020/21 and 2021/22. This is because you do not have to pay tax for these years"

I'm totally confused about their response.

Thanks for any advice!

sheramber

HMRC are saying their records show you did not pay any tax so there is no benefit from the marriage transfer allowance.

Marriage transfer allowance is not an amount of money. It means you get a credit set off against the tax you paid. 

If you did not pay nay ta there is no tax to sett he credit off against.

If you think you did pay tax in these yers, do you have your P60 for each year?

Dazed_and_C0nfused

Oberfeldwebel said:

I hope someone here can advise about Marriage allowance transfer.

We moved to the UK in June 2020, I started working in August 2020, and have been in a full-time employment since then. We got NINo in October 2020. My wife didn't work until April 2022.

My wife sent a claim for Marriage Allowance transfer last month, and today got a letter from HMRC saying that there is no financial benefit for either partner to receive Marriage Allowance.

She tried to backdate and transfer 10% of her Personal Tax Allowance to me, for tax years 2020/21 and 2021/22, since I was the higher earner (intermediate rate in Scotland) and she didn't work for 2 years.

I don't understand why the reason for rejecting my claim is the following:

"No Tax to pay for the years claimed.

We will not change your records for the tax years 2020/21 and 2021/22. This is because you do not have to pay tax for these years"

I'm totally confused about their response.

Thanks for any advice!

It looks like the problem here is with your earnings, not your wife's claim for Marriage Allowance.

Are you absolutely certain you were an intermediate rate payer in those two tax years and not either a non taxpayer or higher rate payer?

Higher rate tax kicks in a lot sooner for Scottish residents than in the rest of the UK.

Oberfeldwebel

sheramber said:

HMRC are saying their records show you did not pay any tax so there is no benefit from the marriage transfer allowance.

Marriage transfer allowance is not an amount of money. It means you get a credit set off against the tax you paid. 

If you did not pay nay ta there is no tax to sett he credit off against.

If you think you did pay tax in these yers, do you have your P60 for each year?

Yes, I have P60 for every year since 2020

Oberfeldwebel

Dazed_and_C0nfused said:

It looks like the problem here is with your earnings, not your wife's claim for Marriage Allowance.

Are you absolutely certain you were an intermediate rate payer in those two tax years and not either a non taxpayer or higher rate payer?

Higher rate tax kicks in a lot sooner for Scottish residents than in the rest of the UK.

In a tax year 2020/21 my gross pay was £25k, in a year 2021/2022 it was £37k. I think that's intermediate rate.

Dazed_and_C0nfused

Oberfeldwebel said:

Dazed_and_C0nfused said:

It looks like the problem here is with your earnings, not your wife's claim for Marriage Allowance.

Are you absolutely certain you were an intermediate rate payer in those two tax years and not either a non taxpayer or higher rate payer?

Higher rate tax kicks in a lot sooner for Scottish residents than in the rest of the UK.

In a tax year 2020/21 my gross pay was £25k, in a year 2021/2022 it was £37k. I think that's intermediate rate.

If that was your only taxable income then you do seem to be eligible.

Looking back at your original post though I presume you realise Marriage Allowance isn't something you can claim (as the recipient), it is the person giving up some Personal Allowance who has to apply.

Assuming that is what a really happened then it might be worth sending copies of your P60's and ask for an explanation as to why you aren't eligible given that you aren't a higher rate payer.

Oberfeldwebel

Thanks for your reply. 
I'm aware that my wife (as lower earner) is giving up 10% of her PA to me, and yes, she has claimed it.