Marriage Allowance

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  • Biffo51
    Biffo51 Posts: 1 Newbie
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    My Partner is not working - does she have a allowance to transfer ?
  • sheramber
    sheramber Posts: 19,131 Forumite
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    Biffo51 wrote: »
    My Partner is not working - does she have a allowance to transfer ?


    Are you married or in Civil Partnership?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    Biffo51

    My Partner is not working

    That really isn't relevant. It's her taxable income which is important. That might be zero but she could be getting £15,000 pension which would mean overall as a couple you wouldn't benefit.

    And sheramber's question is quite important!
  • Shedman
    Shedman Posts: 1,495 Forumite
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    polymaff wrote: »
    Just an attempt to get HMRC and all the media who slavishly follow HMRC's nonsense guidance to recognise that they are, for UK-based Income taxpayers, completely wrong. For this, overwhelming, majority the income criteria are that the taxpayer electing for MAT must not be a higher-rate taxpayer before or after the election, and that the spouse must not be a higher-rate taxpayer beforehand.

    There are cases where someone with £40k taxable would benefit from electing for MAT - and not just one or two cases but thousands. Maybe not the full £238, but a healthy sum.

    What HMRC cannot do is to admit they were wrong; what the media cannot do is to admit that they unthinkingly parrot utter nonsense.

    No change there, then. :)

    Interestingly the 2017-18 SA online calculation page seems to accept the donor can be a basic rate tax payer. Playing around with the wife's taxable income in her self assessment the other day and changing her from non tax payer making her a 'significan' basic rate taxpayer (just to ensure divs and interest allowances don't distort the test) it stills shows the MAT reduction from her personal allowance. Increase the income to become higher rate tax and the MAT reduction figure disappears.

    (Also I now see that they have included the MAT reduction in tax payable on the recipient SA calculation whereas last year it wasn't there)
  • polymaff
    polymaff Posts: 3,904 Forumite
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    polymaff wrote: »
    What HMRC cannot do is to admit they were wrong; what the media cannot do is to admit that they unthinkingly parrot utter nonsense.

    No change there, then. :)
    Shedman wrote: »
    Interestingly the 2017-18 SA online calculation page seems to accept the donor can be a basic rate tax payer.

    And that is the paradox of HMRC. They know they are wrong and have reacted - but not in their advice or documentation. Leastways, that is not entirely true. Recently I saw an HMRC document which can be summarised as:

    You must be a non-taxpayer to elect for MAT - but you can elect if you are a taxpayer.

    Sheesh !
  • quietheart
    quietheart Posts: 1,875 Forumite
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    edited 13 April 2018 at 3:41PM
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    I applied recently. Today I've had a letter saying I owe HMRC £435.80, my husband had a letter saying they owe him £432.49.

    In 2016-2017 I earnt £12060, paid tax of £210.20,which seems ok if personal allowance is £11K
    HMRC say I've underpaid that year by £435.80.

    Does this mean there was no benefit to me applying?
  • polymaff
    polymaff Posts: 3,904 Forumite
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    edited 13 April 2018 at 4:03PM
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    quietheart wrote: »
    I applied recently. Today I've had a letter saying I owe HMRC £435.80, my husband had a letter saying they owe him £432.49.

    In 2016-2017 I earnt £12060, paid tax of £210.20,which seems ok if personal allowance is £11K
    HMRC say I've underpaid that year by £435.80.

    Does anyone know why this might have happened?

    In the majority of cases where both spouses are taxpayers MAT ends up as being a simple transfer from the electing spouse to the other spouse. We'd need more info to explain why your (plural) two figures are not quite the same.

    **Correct
  • Dustyalan
    Dustyalan Posts: 1 Newbie
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    My income from part time working and pensions puts me in 40% tax bracket, but by contributing into my personal pension this drops me back below 40% limit. Under those circumstances am I eligible for the M.T. A? My wife’s sole income is from the old age pension.
  • shilts
    shilts Posts: 78 Forumite
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    My wife and I have just sorted out our marriage allowance backdated to 2015/16 . I have today received a tax calculation letter from HMRC confirming that I will be receiving a cheque to cover the years 2015/16 and 2016/17 . My question is as we have also applied for 2017/18 is this too early to get a tax calculation for this year , thanks ?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    shilts

    When you say "we" applied I presume you really mean your wife applied?

    If so it seems you can expect the 2017:18 repayment between now and November.

    And you will possibly get the option of transferring the refund into your bank account instead of getting a cheque. Attached link has more info.

    https://www.gov.uk/tax-overpayments-and-underpayments
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