Canceling married tax allowance oddness

baz8755

I am somewhat confused as to how HMRC handled cancelling married tax allowance.
Last tax year I called the HMRC and told them I want to cancel the transfer at the end of the tax year, surprisingly they made the change instantly and our tax codes changed. So I went online and re-instated it.

As the new tax year starts today and given the mentioned experience I went online and cancelled the transfer only to be told it won't take effect until the next tax year.

I guess I'm going to have to spend an hour or so on the phone to the HMRC tomorrow to try and sort this mess out unless anyone can advise otherwise.

****UPDATE: I called the HMRC today, explained the situation and they resolved it,
This is the kind of advice I was seeking from this forum and not to be told "I made a mistake" and being quoted unhelpful excerpts from the HMRC website 

molerat

Cancelling leaves it running to the end of the tax year in which you cancel it so cancelling today will leave it in place until April 5th 2026.

baz8755

molerat said:

Cancelling leaves it running to the end of the tax year in which you cancel it so cancelling today will leave it in place until April 5th 2026.

I understand that but it doesn't explain what occurred last tax year and as a result why I waited until today.

Both our tax codes changed and letters issued showing my wife owed the HMRC the accrued benefit to date.

molerat

Last year HMRC made a mistake in cancelling it, there are grounds for cancelling back to the start of the tax year and maybe there were some crossed wires.  This time you made the mistake.

baz8755

molerat said:

Last year HMRC made a mistake in cancelling it, there are grounds for cancelling back to the start of the tax year and maybe there were some crossed wires.  This time you made the mistake.

Not a mistake as I was basing my actions on observations. My actions would only be a mistake if I was informed that my observations were based on the HMRCs mistake.

molerat

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

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).

If your relationship has ended, the change may be backdated to the start of the tax year (6 April).

baz8755

molerat said:

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

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).

If your relationship has ended, the change may be backdated to the start of the tax year (6 April).

We can go round in circles on this discussion. Last year I followed the rules and the result proved otherwise.

molerat

Last year you did not personally make the change, you used an HMRC agent to do it who could make a mistake or misinterpret the reason for the change.

This year you did it yourself and the system reacted correctly according to the legislation.

35har1old

baz8755 said:

molerat said:

Last year HMRC made a mistake in cancelling it, there are grounds for cancelling back to the start of the tax year and maybe there were some crossed wires.  This time you made the mistake.

Not a mistake as I was basing my actions on observations. My actions would only be a mistake if I was informed that my observations were based on the HMRCs mistake.

Who was receiving the transfer?

baz8755

****UPDATE: I called the HMRC today, explained the situation and they resolved it,
This is the kind of advice I was seeking from this forum and not to be told "I made a mistake" and being quoted unhelpful excerpts from the HMRC website 

[Deleted User]

baz8755 said:

****UPDATE: I called the HMRC today, explained the situation and they resolved it,
This is the kind of advice I was seeking from this forum and not to be told "I made a mistake" and being quoted unhelpful excerpts from the HMRC website 

On behalf of the multitude of ‘unhelpful’ people on here who give up their time to assist others, I am delighted that HMRC were able to resolve the error that you made.