Marriage Allowance

Floridabuff

I have been claiming Marriage Allowance for the last two years. My wife is now receiving her State Pension and I assumed that as she is about to reach the Personal Allowance threshold, then the allowance would cease and that I would receive a revised Tax Code. I understand that this will result in me paying more tax. However my wife, whose only income is her State Pension, has received a demand from HMRC which needs to be paid by end Jan 2027.
When I spoke with HMRC they said she went into negative tax allowance and her previous Winter Fuel Allowance was added to this shortfall. Surely she shouldn’t be taxed on her State Pension and any underpayments should be directed to me via the new Tax Code? My wife had no communication from HMRC other than this email demand!

Triumph13

HMRC are not psychic. The marriage allowance doesn't stop until your wife asks for it to stop. If the two of you don't want to do it any more, then she needs to contact HMRC and get it stopped for the 27/28 tax year. You are too late to do anything for this tax year.

TadleyBaggie

Since the State Pension is taxable and if it exceeds the Personal Allowance, then of course tax will be due. Her underpayments are hers, they can't take it from you via an adjusted tax code.

QrizB

My wife is now receiving her State Pension and I assumed that as she is about to reach the Personal Allowance threshold, then the allowance would cease and that I would receive a revised Tax Code.

As above; you will continue to receive Marriage Allowance until your wife stops giving it to you. See:

https://www.gov.uk/marriage-allowance

However my wife, whose only income is her State Pension, has received a demand from HMRC which needs to be paid by end Jan 2027.

Her State Pension has exceeded her reduced personal allowance, and so she owes income tax on the excess.

Surely she shouldn’t be taxed on her State Pension …

The State Pension is taxable income.

… and any underpayments should be directed to me via the new Tax Code?

Your wife's income tax is hers to pay. It can't be reallocated to any other taxpayer, not even her husband.

An equitable outcome here would be for you to give your wife the money to pay her tax demand with.

UKTaxHelper

Nobody's picked up the winter fuel bit. That clawback only applies where your own income tops £35,000, and on just a State Pension she is nowhere near it. Worth ringing back and asking why its in her calculation at all.

QrizB

https://forums.moneysavingexpert.com/discussion/comment/82117902#Comment_82117902

OP says his wife "is now receiving her State Pension". It's entirely possible that she was still working for all or part of the tax year and her income was over £35k.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82117921#Comment_82117921

…except for the fact that OP says that "she is about to reach the Personal Allowance threshold", which presumably means from below rather than above!

DRS1

I wonder if this bit from the Paying back the WFA page on Gov.uk explains what has happened?

"We’ll take back your payment for the 2025 to 2026 tax year by changing your tax code for the 2026 to 2027 tax year. This means you’ll pay more tax each month to pay back the full payment that you received in the 2025 to 2026 tax year.

For example, for a typical payment of £200, you’ll pay about £17 each month extra in tax.

In April 2026, you’ll get a letter or an email notification to tell you that we’ve changed your tax code to take back your Winter Fuel Payment. This will show as an underpayment.

Once we’ve confirmed your income for the 2025 to 2026 tax year, we’ll check whether you still need to repay this amount.

If you do not need to repay the Winter Fuel Payment, we’ll update your tax code to remove it. We’ll also ask your pension provider or employer to refund the extra amount, you already paid, through your pension or employment."