Marriage Allowance Repayment

FioMio

Good morning,

I've just received notification from HMRC that I owe them £508.20 because "you were given more Marriage Allowance than you should have been."

Does this mean that this allowance should be transferred back to my husband for last year? If so, how do we claim it back for him?

Any help and advice would be greatly appreciated.

Many thanks,

DE_612183

I presume you asked for the transfer, but then earned over the threshold for it to apply?

How much did your husband earn last year?

I'm not sure if you can transfer it back - I think when you apply you can backdate it, so if you may be able to use the same process on the HMRC website to do this as well.

p00hsticks

DE_612183 said:

I presume you asked for the transfer, but then earned over the threshold for it to apply?

I think it would be more usual for the low earner / non-tax payer to ask for the transfer, and for the beneficiary to then be asked for the allowance back if they exceeded the basic tax rate band and so were no longer eligible. 

OP can you please clarify 
Who requested the transfer ?  
What are the tax codes used for you and your husband and how much income did you each have last year ?

Dazed_and_C0nfused

FioMio said:

Good morning,

I've just received notification from HMRC that I owe them £508.20 because "you were given more Marriage Allowance than you should have been."

Does this mean that this allowance should be transferred back to my husband for last year? If so, how do we claim it back for him?

Any help and advice would be greatly appreciated.

Many thanks,

Yes, that will happen automatically, you (or he) don't need to do anything.

sheramber

You cannot get more Marriage Transfer Allowance than you should. It is a fixed amount and all or nothing.

If your husband transferred it to you  was his income for these years below the taxable limit?

If so  so. transferring it back to him will not make any difference. 

Dazed_and_C0nfused

sheramber said:

You cannot get more Marriage Transfer Allowance than you should. It is a fixed amount and all or nothing.

If your husband transferred it to you  was his income for these years below the taxable limit?

If so  so. transferring it back to him will not make any difference. 

True but it looks like the op was ineligible due to being a higher rate payer, hence owing just over £500.

So they lose their tax credit and the spouse will receive the full £12,570 Personal Allowance irrespective of whether it's of any use to them.

FioMio

Good evening,

Thank you all for your replies - I appreciate the advice.

The issue isn't so much about the repayment (I got a pay rise which pushed me over the threshold) it was more about whether or not my husband would get the full Personal Allowance for last year back automatically or whether we would have to claim to get it back. My husband has not yet had any notification from HMRC.

Many thanks again for your help and advice,

Dazed_and_C0nfused

FioMio said:

Good evening,

Thank you all for your replies - I appreciate the advice.

The issue isn't so much about the repayment (I got a pay rise which pushed me over the threshold) it was more about whether or not my husband would get the full Personal Allowance for last year back automatically or whether we would have to claim to get it back. My husband has not yet had any notification from HMRC.

Many thanks again for your help and advice,

It does happen automatically.

But they might not have all the information yet needed to finalise 2024-25 for your husband.

Will receiving the full Personal Allowance actually benefit him, or is he due a refund for any reason?   If it doesn't he won't normally be getting a calculation like you have received.