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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 2nd Jun 15, 4:39 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Marriage Allowance
    • #1
    • 2nd Jun 15, 4:39 PM
    Marriage Allowance 2nd Jun 15 at 4:39 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks ,
Page 56
    • badmemory
    • By badmemory 10th Dec 17, 1:25 PM
    • 1,709 Posts
    • 2,305 Thanks
    badmemory
    I do wish that people would realise that due to governmental downgrading of all government jobs, that when you ring a gov dept your are getting a call centre not an actual gov dept. They are undertrained, underinformed, and unable to do much other than pass on what you have said. They are unable to tell you that the (for example) marriage allowance you have claimed is not a good idea for you, or that the child benefit you are claiming is going to have to be paid back because your spouse is earning too much.

    It is now down to you & you alone the HMRC charter no longer applies. This charter says they will help you to pay the correct tax. The current thinking is that if you make a mistake on your tax we will wait a few years before coming back & telling you that and then charge you penalties for the privilege.
    • polymaff
    • By polymaff 10th Dec 17, 4:22 PM
    • 2,114 Posts
    • 917 Thanks
    polymaff
    @Emma2195

    An MAT requirement is that both parties be alive on one day of the relevant tax year.
    Last edited by polymaff; 10-12-2017 at 4:24 PM.
    • Kitty Fingers
    • By Kitty Fingers 13th Dec 17, 3:17 PM
    • 5 Posts
    • 0 Thanks
    Kitty Fingers
    Hi

    Sorry if this has been asked before, but I have a question regarding how we are paid back the money owed to us due to the marriage allowance. They have sent us a letter for the year 2016-17, which says we have to claim online, they haven't sent us anything about 2015-16, but when I asked them they said it was being processed. I asked them about a third due payment, which I assume is for this year, but they refused to answer my questions. All I wanted to know is how any tax we have overpaid for this year would be dealt with. Would it be the same as the previous 2 years, ie we'd be sent a letter with what we are owed and how to claim it, or would it be given back as a tax reduction in my husbands pay, and if so, when will that reduction start?

    I think I have probably over thought this, but how will it be paid to us? I'm a bit confused about this year, regarding how and when we will receive it. My husband had a look on the internet, but I think he understands it less than me!
    • p00hsticks
    • By p00hsticks 13th Dec 17, 4:54 PM
    • 6,251 Posts
    • 6,707 Thanks
    p00hsticks
    Hi

    Sorry if this has been asked before, but I have a question regarding how we are paid back the money owed to us due to the marriage allowance. They have sent us a letter for the year 2016-17, which says we have to claim online, they haven't sent us anything about 2015-16, but when I asked them they said it was being processed. I asked them about a third due payment, which I assume is for this year, but they refused to answer my questions. All I wanted to know is how any tax we have overpaid for this year would be dealt with. Would it be the same as the previous 2 years, ie we'd be sent a letter with what we are owed and how to claim it, or would it be given back as a tax reduction in my husbands pay, and if so, when will that reduction start?

    I think I have probably over thought this, but how will it be paid to us? I'm a bit confused about this year, regarding how and when we will receive it. My husband had a look on the internet, but I think he understands it less than me!
    Originally posted by Kitty Fingers
    Are you and your husband paid via PAYE (either for employment or by getting a private defined benefit pension) ? If so, the recipient should get the allowance via a change to their tax code which means that less tax will be deducted at source.

    I think that refunds for previous years are sent via cheque (or if you have accessed your online tax account, you might have an option to simply nominate a bank account for it to be transferred into - I know they now do this for other end of year tax refunds).
    • Dazed and confused
    • By Dazed and confused 14th Dec 17, 8:47 AM
    • 2,633 Posts
    • 1,260 Thanks
    Dazed and confused
    Kitty Fingers

    Their is no "we" or "us" with Marriage Allowance, the consequences of applying affect each person differently.

    If you applied then you will either notice no change or pay more tax. You can never get a refund or pay less tax as a result of applying for Marriage Allowance.

    But if you applied your spouse will see a reduction in their tax (assuming they pay enough in the first place).

    Tax due back for the tax years which have already ended will be in a lump sum, either a cheque or possibly the option of your spouse going into his personal tax account and pulling the money into his bank account.

    If your spouse is working or gets a pension anything they are due for this tax year (2017:18) will be done via a new tax code. A few months worth of the Marriage Allowance (for period April to December) will come back via reduced tax next time his employer pays him (after they get their copy of his new tax code) and the rest will be reduced tax each payday to the end of the tax year.

    So what has your spouse actually received from HMRC?

    In your post you say They have sent us a letter for the year 2016-17, which says we have to claim online but I wouldn't think HMRC write to couples unless they are in business together. Do you mean they wrote to your spouse? And if so what has to be claimed online? Marriage Allowance or is it a message to say your spouse can go online to get the tax refund which has come about because of you applying for Marriage Allowance?
    Last edited by Dazed and confused; 14-12-2017 at 8:51 AM.
    • Kitty Fingers
    • By Kitty Fingers 14th Dec 17, 3:56 PM
    • 5 Posts
    • 0 Thanks
    Kitty Fingers
    I just used the terms 'we' and 'us', because all our money is pooled together. I get that I claim and it goes to him. It was taken off the tax he pays on his payslip, so I already have my answer. Thank you for taking the time to reply though.
    • Dazed and confused
    • By Dazed and confused 14th Dec 17, 6:58 PM
    • 2,633 Posts
    • 1,260 Thanks
    Dazed and confused
    HMRC do not repay Marriage Allowance tax refunds for previous tax years through the current tax code so anything he has received back that way would only be for 2017:18.

    So is your husband still missing the refund for 2015:16 or was it included in the letter (calculation?) he received for 2016:17?
    • potts8
    • By potts8 20th Dec 17, 12:11 PM
    • 16 Posts
    • 0 Thanks
    potts8
    I think I may have misunderstood if I have been eligible for Marriage Allowance for the last couple of years but if anyone could verify if I'm right it would be appreciated.

    I understand this is for basic tax payers however I was of the understanding that if you have other allowance such a pension relief at 40% and that brings you back down to the basic rate then you are still eligible?

    Approx example below:

    2016-17
    Salary: £45500(High rate payer, this is shown as my taxable income)
    Pension contributions: £4500(Relief at source, not salary sacrifice)
    Salary after pension relief: £41000(basic tax payer)

    I thought this made me eligible but apparently not. Its only if you are a basic tax payer with out any allowance paid.

    Is that everyone else's understanding?
    Last edited by potts8; 20-12-2017 at 12:26 PM.
    • Dazed and confused
    • By Dazed and confused 20th Dec 17, 9:24 PM
    • 2,633 Posts
    • 1,260 Thanks
    Dazed and confused
    If you have told us the whole story and don't have any other income you've not told us about, which with the greatest of respect is not always the case on these threads, then I cannot see what the problem is?

    You are a basic rate payer. If you can persuade your spouse to apply for 2016:17 then you should see a reduction in your tax payable of £220.
    • potts8
    • By potts8 21st Dec 17, 1:09 PM
    • 16 Posts
    • 0 Thanks
    potts8
    Nope, no other income to mention. It was my understanding also that I should be able to claim this but he was giving me the impression that you can't benefit from both the pension relief at 40% and also the marriage allowance when the relief brought me back down to 20%
    • Dazed and confused
    • By Dazed and confused 21st Dec 17, 3:14 PM
    • 2,633 Posts
    • 1,260 Thanks
    Dazed and confused
    You definitely should not claim it.

    Anybody claiming Marriage Allowance can either pay the same tax or more, they can never ever pay less as a result of claiming.

    Who is "he"?
    • tasticz
    • By tasticz 21st Dec 17, 4:08 PM
    • 320 Posts
    • 87 Thanks
    tasticz
    Person A owns a limited company and takes a salary less than the minimum threshold (approx 8k/year) and rest of the earning is taken as dividends.

    As person A doesn't pay any tax on his salary, can the allowance be transferred to person B who pays 20% tax?
    • Dazed and confused
    • By Dazed and confused 21st Dec 17, 4:18 PM
    • 2,633 Posts
    • 1,260 Thanks
    Dazed and confused
    All depends on the amount of dividend income. The Marriage Allowance tax law has some complex rules about dividends so it depends on the amounts involved.
    • tasticz
    • By tasticz 21st Dec 17, 4:27 PM
    • 320 Posts
    • 87 Thanks
    tasticz
    All depends on the amount of dividend income. The Marriage Allowance tax law has some complex rules about dividends so it depends on the amounts involved.
    Originally posted by Dazed and confused
    The dividends takes the person A above salary threshold limit
    • Robson65
    • By Robson65 5th Jan 18, 4:05 PM
    • 103 Posts
    • 727 Thanks
    Robson65
    After I told a friend about this she applied and she got her claim backdated but when they sent her the money she was owed they taxed it ? Is that right ? Should she be paying tax on tax relief ?

    Many thanks
    Robson
    I almost had a psychic boyfriend but he left me before we met.
    • polymaff
    • By polymaff 5th Jan 18, 4:10 PM
    • 2,114 Posts
    • 917 Thanks
    polymaff
    All depends on the amount of dividend income. The Marriage Allowance tax law has some complex rules about dividends so it depends on the amounts involved.
    Originally posted by Dazed and confused
    Actually, it isn't complex. FA 2016 contains a lengthy clarification which can be summarised as: Assume that the Dividend Allowance doesn't exist.
    • polymaff
    • By polymaff 5th Jan 18, 4:12 PM
    • 2,114 Posts
    • 917 Thanks
    polymaff
    The dividends takes the person A above salary threshold limit
    Originally posted by tasticz
    The what? . . . .
    • polymaff
    • By polymaff 5th Jan 18, 4:17 PM
    • 2,114 Posts
    • 917 Thanks
    polymaff
    After I told a friend about this she applied and she got her claim backdated but when they sent her the money she was owed they taxed it ? Is that right ? Should she be paying tax on tax relief?
    Originally posted by Robson65
    What was the amount she received and what was the tax demanded?
    Last edited by polymaff; 05-01-2018 at 4:19 PM.
    • MothballsWallet
    • By MothballsWallet 5th Jan 18, 4:55 PM
    • 12,334 Posts
    • 16,642 Thanks
    MothballsWallet
    Does anyone know if there's an application form for this allowance as my wife's out of the UK at the moment to see her family and she wants to apply for it, but internet connections where she is aren't always the most reliable?

    Something that can be saved to Word/PDF would be best, if possible.
    Always ask yourself one question: What would Gibbs do?

    I live in the UK City of Culture 2021

    I had to put mothballs in my wallet - the moths had learned the PINs to my cards...
    • sheramber
    • By sheramber 5th Jan 18, 6:24 PM
    • 4,782 Posts
    • 3,578 Thanks
    sheramber
    Does anyone know if there's an application form for this allowance as my wife's out of the UK at the moment to see her family and she wants to apply for it, but internet connections where she is aren't always the most reliable?

    Something that can be saved to Word/PDF would be best, if possible.
    Originally posted by MothballsWallet
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366958/18.pdf
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