Amending Tax return/ Marriage Allowance

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81959901#Comment_81959901

You return is processed by a computer. Exactly as you complete it.

You will be given your full allowance so your tax bill will be lower than it should be.

Any anomaly will be highlighted to be checked later by a person.

They will realise that you transferred tha marriage allowance and amend your return, bringing out an underpayment of tax.

As interest will be charged on late payment it is better to amend your return at the earliest opportunity.

If you wish to cancel the transfer now it will continue until the end of the current tax year.

movingon

Thank you both. I will amend it now

cc123mm456

Update: I've amended my previous reply to include: the additional tax could be up to about £251

Having thought about this, the savings starting rate will still apply for the first £5,000 of savings interest, plus the £1,000 savings allowance.

So additional tax might only apply if savings interest takes the total income to above £17,310

If not, then for your combination of non-savings income plus savings income can still make the marriage allowance worthwhile.

Anyway the online self-assessment will calculate this for you.

movingon

I went to amend it and it said that you could only say "Yes" to the application if your income was £12570 plus less than 6K interest payments. My total income from pension is less than 6K but savings interest is more than 6K so I have above £17,310, so I assumed from the instructions I could not change it .

I am concerned now that I have only paid a bill based on PA of £12570 and eventually husband or me will get a bill which is understandable, but we will be fined. Or, even worse I will be asked about previous years and I do not have the information available.

sheramber

phone them.

The best time to call is as soon as lines open so you are at the front of the queue.

https://www.gov.uk/find-hmrc-contacts/self-assessment-general-enquiries

cc123mm456

I suggest that there is one thing that you could try….

Try temporarily removing the interest (or set it to a low amount, like £1,000).

Then the online form should allow you to update the marriage allowance section. Save it (but don't submit).

Then try adding back in the interest, and then save and proceed to the calculation and submission.

This may not work, but it's worth a try. If not, then yes you'll have to call the self-assessment team. I'm sure it won't be the first time they have seen the issue.

movingon

Further to this, I have an update. And am still confused.

I wasn't able to change the answer to the question about MA. However, I can see on my Tax account that I am registered as having donated 10% of my allowance to husband.

I paid the amount asked for on the calculation which showed the additional interest I found, but £12570 PA and waited to see what happened.

What it says now, is that I am in credit for the amount I paid, but owe an additional £243.80. The "View your calculation page " still shows the original figure I paid, and has done so for a full week, so I don't know what this figure is for. I could understand it if it reflected the lower PA but I think that would be £252 owing? It is not a payment on account as nowhere shows that HMRC want a payment on account. I have to pay £411, ie £167.20 already paid plus £243.80 in total by July 31st (for 24-25)

Here is the calculation, if anyone can clarify please:

Interest from UK banks, building societies and securities etc
£13,826.00
UK pensions and state benefits
£5,580.00
Total income received
£19,406.00
minus
Personal Allowance
£12,570.00
Total income on which tax is due
£6,836.00
How we have worked out your income tax
Amount
Percentage
Total
Savings interest from banks or building societies, securities etc.
Starting rate
£5,000.00
x 0%
£0.00
Basic rate band at nil rate
£1,000.00
x 0%
£0.00
Basic rate
£836.00
x 20%
£167.20
Income Tax charged after allowances and reliefs
£167.20
Income Tax due
£167.20

Thank you

cc123mm456

Those figures in the calculation are correct for a tax payer that has not registered for marriage allowance. Unfortunately that is not correct for your situation.

I am not sure whether you have just viewed those calculations (on a draft of the amendment), or if you have submitted the amended tax return and got a new submission reference then waited more than 72 hours after that?

The tax year overview summary page should be updated with your latest tax return submission amount less all the payments made to date (after a few days delay). If there were any additional penalties or interest those would be listed separately on that summary page.

The issue remains regarding the tax underpayment of about £252, due to the total income including interest being higher than was originally anticipated, meaning the marriage allowance can't be applied. It will be best to discuss that with HMRC, to ask how it can best be resolved.

Whether or not you have submitted the amendment, I suggest it will be best to ring the self-assessment help line first. You can explain the problem with entering the marriage allowance Also you can ask them to help you with reconciling the payments against the tax summary.

movingon

I am not sure whether you have just viewed those calculations (on a draft of the amendment), or if you have submitted the amended tax return and got a new submission reference then waited more than 72 hours after that?

Yes that is the case

cc123mm456

Thanks for clarifying.

You should be able to see the breakdown of how the balance is made up on the personal tax account. By choosing More Self Assessment Details > Tax Years, and then choose the tax year.

You can then click on the headings to see the breakdown. For example click on the heading 'Less payments for this year', to see the individual payments that make up the amount displayed.

If you still cannot understand how the balance is made up, contact the Self Assessment general enquiries line. See the link provided by sheramber earlier.

The issue with the underpayment of tax between you and your husband may still need to be dealt with, and you can also discuss that. Possibly HMRC will need to make an adjustment to your husband's tax code to recover it, but you can ask how that will be dealt with.