Amending Tax return/ Marriage Allowance

movingon

I too have been asked to complete a tax return for 24/25. I have completed it and sent it yesterday. I paid the amount asked for straightaway. Guess what today, I have found another £35 interest which was paid on an old account, so I need to amend the return. Right now, because it is less than 72 hours since completion it says on my account that I have not yet submitted the Return at all, although there is a receipt for the amount paid.

If I try to amend the return it asks for the full amount owing, ie not the amount due on £35. Should I calculate the difference myself and send that, or should I wait until the balance is 0 and then submit an amended return then?

Also another question, the calculation does not show the fact that my personal allowance should reflect the 10% I donated for marriage allowance to my husband, but the calculation is based on £12750 I think this is because my total income when the savings interest is included is now over the threshold. (My actual "earned" income is 6k and the rest is savings interest). Is that correct?

Thank you

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6663814/amending-tax-return

Your tax calculation will never reflect money you have paid direct to HMRC, that is shown elsewhere on your Self Assessment account.

Unless you are a higher rate payer you will still be eligible for Marriage Allowance. Being a basic rate payer doesn't change that. How did you answer the Marriage Allowance question when completing the return?

If you think £7 extra will be due then just pay that asap to avoid or minimise interest charges.

cc123mm456

You will need to amend the self-assessment to include the additional interest, and re-submit it.

On the personal tax account, choose "More Self Assessment Details", then "Tax Return Options", pick the year, then there will be a button for "Amend return" (I'm not sure whether or not you'll have that available until the 72 hours from the last submission).

You can pay the balance before or after the amended return is submitted, but the self-assessment amendment must still be done.

The payments area of your personal tax account is completely separate to the self-assessment. You can pay it before it is updated with the self-assessment balance, or you can wait until the balance is updated and then pay. It doesn't matter (unless payment is already late).

I understood that this is a recent request from HMRC to submit your first self-assessment. Is that correct? in that case they usually allow 3 months for submission and payment. You would not be late, unless you missed that deadline.

I would recommend that you do check back after the 72 hours from the last submission, to make sure that your payments balance against the self-assessment tax.

movingon

https://forums.moneysavingexpert.com/discussion/comment/81959794#Comment_81959794

movingon

I have done self assessment when I was working but stopped having to file a return in 2014 when I stopped earning. So yes, this is the first time since then that I have had to do it. As a non tax payer my husband claimed my 10% already and my tax code ends in N, so I answered "no" to the question "Do you want to claim MA" as it was already in place.

Should I have answered "Yes"?

So you all seem to be saying , submit the amendments (interest and MA question) and pay the difference between what I have already paid, and whatever the new total comes to?

Thanks

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81959829#Comment_81959829

No one can claim Marriage Allowance as such, the divorce courts would be full!

You must have applied in the first place so if it was in place that year you should show that on your return. If not you risk it being removed from your spouse.

sheramber

There is a box on the return stating you have transferred marriage allowance to your partner.
You need to give his details.
It is near the end of the main return form

You can amend that if necessary when you amend it for the interest.

movingon

But if I am already on an N code, is it now not applicable because my total income (including interest savings income ) more than £12570, even though earned income is less than 6K?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81959843#Comment_81959843

It's either one of you (or both of you) being liable to higher rate tax that makes you ineligible.

A married couple each with taxable income of £30k each would be eligible. Although they normally wouldn't be able to benefit overall.

movingon

Well I am still confused. I've looked at the gov website which does not make clear to me if "income" includes savings interest. In any case, I have not told HMRC I no longer wish to donate 10% of my PA, so when doing SA do they not know I have an N code and should I have answered "YES" to the relelvant question about MA on the form?

cc123mm456

Regarding the marriage allowance

You have stated your tax code ends in N, meaning you have transferred 10% of your personal allowance to your spouse. Was that the case in 2024/25?

Then you asked "is it now not applicable because my total income (including interest savings income ) is more than £12570 ?"

If you had marriage allowance in place for tax year 2024/25, but then it turned out that your savings interest in that tax year pushed you above the expected £11,310 income, this will mean that you will have some more tax to pay unfortunately.

If your taxable income was over £12,570, then the additional tax could be up to about £251, which is equivalent to the tax saved by your husband. So between you both it equals out. It just means you were unable to take advantage of the tax saving that year.

The marriage allowance can only be cancelled for future tax years. Before doing that, you would need to consider whether you expect to always receive income over £12,570, or whether that was a one-off due to higher interest rates.

You do need to amend the 24/25 self-assessment to include the details of the marriage allowance that was in place for that tax year.