Have I misunderstood the 'marriage tax allowance'?

Dazed_and_C0nfused

MACKEM99 said:

Dazed_and_C0nfused said:

MACKEM99 said:

Dazed_and_C0nfused said:

MACKEM99 said:

MACKEM99 said:

Just done it and you get this:

You have asked us to cancel your Marriage Allowance. This means:

• your Marriage Allowance will remain in place until 5 April 2026
• 
  
• your Personal Allowance will go back to the normal amount from 6 April 2026
• 
  

Might have been helpful if they told you second sentence before committing!

Interestingly I have a new HMRC letter date 9 December, arrived today, which has removed the allowance from me now (tax year 6 Apr 24 to 5 April 25) and a bill which relates to around 4 months of extra tax I should pay.  I have already had one dated same date which arrived a few days ago which is for tax year 25/26 which includes the transferred sum (1260)?  Now totally confused. 

Don't know how likely this is but it could be things arriving out of normal sequence?

The review of 2024/25 identified you were no longer eligible, usually from being a higher rate payer, and your 2025/26 tax code was updated at the same time, that just got delivered first?

In 24/25 I still had the part allowance transferred from wife.

You previously said this though.

Interestingly I have a new HMRC letter date 9 December, arrived today, which has removed the allowance from me now (tax year 6 Apr 24 to 5 April 25) 

That is correct.  But the allowance is not on it.  I have been getting it for a few years.  Thats why I am confused.  I will post the details from the letters when I get home.

Look for a tax reducer worth £252, that is what Marriage Allowance actually entitled you to, not extra allowances"

MACKEM99

Dazed_and_C0nfused said:

MACKEM99 said:

Dazed_and_C0nfused said:

MACKEM99 said:

Dazed_and_C0nfused said:

MACKEM99 said:

MACKEM99 said:

Just done it and you get this:

You have asked us to cancel your Marriage Allowance. This means:

• your Marriage Allowance will remain in place until 5 April 2026
• 
  
• your Personal Allowance will go back to the normal amount from 6 April 2026
• 
  

Might have been helpful if they told you second sentence before committing!

Interestingly I have a new HMRC letter date 9 December, arrived today, which has removed the allowance from me now (tax year 6 Apr 24 to 5 April 25) and a bill which relates to around 4 months of extra tax I should pay.  I have already had one dated same date which arrived a few days ago which is for tax year 25/26 which includes the transferred sum (1260)?  Now totally confused. 

Don't know how likely this is but it could be things arriving out of normal sequence?

The review of 2024/25 identified you were no longer eligible, usually from being a higher rate payer, and your 2025/26 tax code was updated at the same time, that just got delivered first?

In 24/25 I still had the part allowance transferred from wife.

You previously said this though.

Interestingly I have a new HMRC letter date 9 December, arrived today, which has removed the allowance from me now (tax year 6 Apr 24 to 5 April 25) 

That is correct.  But the allowance is not on it.  I have been getting it for a few years.  Thats why I am confused.  I will post the details from the letters when I get home.

Look for a tax reducer worth £252, that is what Marriage Allowance actually entitled you to, not extra allowances"

There is no reducer of £252 it shows as "Transfer of Allowance £1260" Which I agree works out to £252 less tax to pay (20% of £1260) (on the normal "Tell you your tax code letter".

But as you say on the other letter which says  you have paid too little tax there is a reducer of £252 which equates to the same thing.  They don't make it easy do they?

However with your advice to look at the Adjustments part which includes the £252.00 plus another figure in the section which equates to the figure on letter dated 26 March 2025 informing that I owe £... then I now únderstand.  Thanks very much.

Should be easier from 6 Apr 26 (although more costly for me and better for her) when the £1260/£252 goes back to her.

What ever did we do without the helpful nice people on MSE?

TeleAddicts

Hi,

I am looking to cancel on the gateway as my wife will be paying tax on her pensions after April 6th.

Am I right in thinking the only option is to click on the following…….

'Do not need Marriage Allowance any more'?

The wording on the site is terrible as it makes reference to cancelling the current tax year and I don't want it to start until the new tax year.

They don't make things easy do they?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81903402#Comment_81903402

Is part of the problem that you shouldn't be the one cancelling it.

In the same way you, as the receipient could never "claim" it in the first place?

TeleAddicts

Actually I do have an option that allows me to give it back via my gateway access.

My wife does not use a computer therefore I do the leg work on her behalf.

The problem is actually the wording so I was hoping to get an answer from the original OP that has actually worked through the screens.

sheramber

Your wife has transferred some of her allowance to you . She is the person who made the claim, regardless if you completed the form on her behalf.

Cancelling the transfer must be done by your wife so cancelling it online needs to be done on her tax account.

Then the allowance will cease at 5 April.

Either party can cancel if the relationship has ended. It is only in these circumstances you personally would cancel the allowance.

You need to be clear whether you are cancelling on your Government Gateway which is only appropriate if the relationship has ended.

Or

Are you cancelling on your wife’s Government Gateway which is the correct way to do it.

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

How to cancel

Either of you can cancel if your relationship has ended.

If you’re cancelling for another reason, the person who made the claim must cancel.

molerat

If YOU cancel it the cancellation may be backdated to the start of the 25-26 tax year, if your wife cancels it will cease at the start of next tax year. I do agree though that it is very messy and over complicated.

TeleAddicts

Thank you for the replies and yes I am cancelling on my wife’s Government Gateway.

molerat, thank you 👏this is exactly the information I am looking for.

We need to cancel it from the start of the next tax year.

I am surprised that we haven't received notification that we are no longer entitled to it?

I am obviously giving them far too much credit.

I think I will wait until the new tax year starts and do it then.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81908312#Comment_81908312

Which of you do think has become ineligible 🤔

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81908312#Comment_81908312

If your wife cancels it after 5April then it will continue until 5 April 2027.

The cancellation takes effect from the end of the year in which you cancel.