Marriage Allowance

veryintrigued · 29 June 2016 at 7:02PM

Dazed_and_confused wrote: »

Or maybe its something as simple as the extra £60 laundry allowance lots of MSE people claim.

Almost certainly this.

We have a 996N here too.

jellybean08 · 15 July 2016 at 8:38PM

We applied and my tax code has been changed to the new allowance. They told my husband I'd be eligible for a rebate. This was about 3 months ago. Any idea how long this takes to come through?

Dazed_and_confused · 15 July 2016 at 9:42PM

jellybean08 wrote: »

We applied and my tax code has been changed to the new allowance. They told my husband I'd be eligible for a rebate. This was about 3 months ago. Any idea how long this takes to come through?

I think you're getting confused somewhere. "We" cannot apply, it is the lower earner who applies and gives away some of their allowance to their husband/wife.

You need to tell us who applied and which tax year(s) you applied for. It's possible any tax refund would effectively be included in the wages when the employer used the new code but this all depends on which year(s) were applied for and who applied.

More actual facts will get you a more helpful answer

Consumerist · 15 July 2016 at 9:59PM

jellybean08 wrote: »

We applied and my tax code has been changed to the new allowance. They told my husband I'd be eligible for a rebate. This was about 3 months ago. Any idea how long this takes to come through?

If they told your husband that you would be eligible for a rebate then your allowance should have been increased. Rebates can only apply for 2015/16 since the 2016/17 allowance will be applied through this year's tax code.

On the above basis (and I hope I've got it right), if you are due for a rebate then I would suggest you contact HMRC because, the last I heard, they were anticipating rebates for 2015/16 during June.

Frugalone · 15 July 2016 at 10:49PM

I work self-employed part-time and transferred the allowance to hubby back in April via self-assessment form. His tax code changed pretty quick but as yet, almost 3 months later still no refund for 2015/16 has come!! We've rung them and all we get told is that it's due to "national issues" and it will be sorted. Not good enough. I might fine them!!

stardust16 · 16 July 2016 at 9:30PM

Marriage Allowance Transfer Tax Year 2015-16
Successfully transferred £1060 Marriage Allowance to my husband in November 2015. My personal allowance confirmed as being reduced to £9540.
As advised by HMRC, followed HMRC R85 Helpsheet guidelines and registered to receive savings interest without tax taken off with effect from 6 April 2015 because of my low income - £8285, non-savings income.
I was entitled to £5000 tax-free savings allowance for lower incomes but, unexpectedly (as NS&I added interest at the end of year 1 of my 3 year Pensioner Bond, when I thought that interest would be added at maturity when the capital became accessible) my savings interest totalled £5467. I contacted HMRC and had it confirmed in writing that my unused Personal Allowance of £1255 (reduced PA of £9540 less £8285 non-savings income) would be set against my savings interest of £5467. As the remaining amount (£5467 minus £1255 = £4212) was less than £5000 it was tax free. They confirmed I was a non-taxpayer for 2015-2016 which is what I was expecting from the R85 Helpsheet guidelines which take into account the £1060 transferred marriage allowance.
However P800 calculations from HMRC say that I owe them £212 tax because I had reduced my PA to £9540 by transferring the £1060 marriage allowance. I cannot understand this as £10600 PA reduced to £9540, less taxable income of £8752 (£8285 non-savings income plus £467 taxable savings interest) still leaves unused Personal Allowance of £788. So how can I be asked to pay tax when I still have unused PA greater than the amount being asked for?
What am I failing to comprehend here? I have spent hours on the phone to HMRC over the past three weeks but the only explanation they give is that I have to pay the £212 tax on the £1060 marriage allowance that I transferred.
Martin answers a question on MSE Marriage Allowance page about the marriage allowance if you have savings interest over £5000 and how you are still eligible if you remain a non-taxpayer. Or am I misunderstanding this too?
Can anyone help me get my head around this?

Dazed_and_confused · 16 July 2016 at 10:35PM

I think you and the original information hmrc sent you are correct but something which happened or figures from part way through the year are irrelevant, in as much as it's actual facts at the end of the which count when it comes to tax ;-)

What was the final amounts and type of income at the year end?

Is this exactly what is shown on the hmrc calculation?

If so I would suggest rather than phoning and trying to discuss your existing calculation you phone and ask them to do a new calculation. There's another marriage allowance thread on mse and very recent comments on that indicate something has been changed at hmrcs end regarding marriage allowance.

It may be unconnected to your problem but sometimes these things have a simple answer.

jimmo · 16 July 2016 at 10:59PM

Your own figures seem to make sense but, strictly speaking, they are technically flawed because the £5,000 is not an allowance. it’s a nil rate tax band. Whether that matters is hard to guess at the moment but a P800 is pretty much just a (tax) calculation.
Have they got your income right?
Have they got your reduced personal allowance right?
Are there any other differences between the P800 figures and your own calculation?

polymaff · 17 July 2016 at 10:22AM

"Who can apply

You can get Marriage Allowance if all the following apply:

you’re married or in a civil partnership
you don’t earn anything or your income is under £11,000
your partner’s income is between £11,001 and £43,000"

Based on your recent disclosure you fail the highlighted test, so you don't qualify for MAT - hence the demand. [the above figures are for the current tax year, but the principle still applies]

If you have now declared correctly then you should end up with zero tax liability - but that may take time for HMRC to recognise.

Dazed_and_confused · 17 July 2016 at 10:43AM

polymaff wrote: »

"Who can apply

You can get Marriage Allowance if all the following apply:
you’re married or in a civil partnership

you don’t earn anything or your income is under £11,000

your partner’s income is between £11,001 and £43,000"

Based on your recent disclosure you fail the highlighted test, so you don't qualify for MAT - hence the demand. [the above figures are for the current tax year, but the principle still applies]

If you have now declared correctly then you should end up with zero tax liability - but that may take time for HMRC to recognise.

This is wrong. Gov.uk information about the marriage allowance clearly supports stardust16's view, see note 6 in this link (which is specific to the year stardust16 is questioning)

*6 Available to spouses/ civil partners born after 5 April 1935. This allowance is 10% of the personal allowance for those born after 5 April 1938. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/ civil partner. The recipient must not be liable to tax above the basic rate. The recipient is eligible to a tax reduction of 20% of the transferred amount.

https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2015-16/tax-and-tax-credit-rates-and-thresholds-for-2015-16

Marriage Allowance

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