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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 57
    • Dazed and confused
    • By Dazed and confused 5th Jan 18, 9:55 PM
    • 2,643 Posts
    • 1,266 Thanks
    Dazed and confused
    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


    Someone has got very confused somewhere along the line. Anyone who applies for Marraige Allowance can never ever pay less tax as a result. They either pay the same or more. It is their spouse who could pay less but never the applicant. If she applied as you have stated then she cannot expect to pay less tax.

    First port of call would probably be to check exactly what she has done.
    • MothballsWallet
    • By MothballsWallet 6th Jan 18, 5:27 PM
    • 12,334 Posts
    • 16,642 Thanks
    MothballsWallet
    Thank you, sheramber! You're awesome!

    That'll save Mrs MbW from having to worry about using the HMRC website from where she is.
    Always ask yourself one question: What would Gibbs do?

    I live in the UK City of Culture 2021

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    • kezzygirl
    • By kezzygirl 7th Jan 18, 9:05 AM
    • 663 Posts
    • 701 Thanks
    kezzygirl
    Hi, hoping someone can help. My husband has claimed tax allowance for the past 2 years, his pay has now increased and so marriage allowance is now pointless as he is over the threshold. We have cancelled it on the online gateway, it says it will run until April 2018 but once it's cancelled it is backdated to the date it was originally claimed from?? How can they backdate and remove the allowance when he was eligible at the time but has simply increased pay? Will this mean he will owe tax? Thanks in advance
    • molerat
    • By molerat 7th Jan 18, 1:51 PM
    • 18,802 Posts
    • 12,981 Thanks
    molerat
    Which one of you cancelled it ?
    You or your partner can cancel Marriage Allowance online. You!!!8217;ll be asked to prove your identity using information HM Revenue and Customs (HMRC) holds about you.
    The date the allowance ends depends on who cancels it.
    If you stop transferring the allowance to your partner, it will run until the end of the tax year (5 April).
    If your partner asks to stop receiving your allowance, HMRC will backdate the change to the start of the tax year you first started transferring it.
    https://www.gov.uk/marriage-allowance/if-your-circumstances-change

    So if he cancelled it then he will get a bill for all received since first starting, if you cancelled it will run to the end of this FY and he will have to pay back this year's if he is now a higher tax payer.
    Last edited by molerat; 07-01-2018 at 2:06 PM.
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    • Robson65
    • By Robson65 7th Jan 18, 7:57 PM
    • 103 Posts
    • 727 Thanks
    Robson65
    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


    Someone has got very confused somewhere along the line. Anyone who applies for Marraige Allowance can never ever pay less tax as a result. They either pay the same or more. It is their spouse who could pay less but never the applicant. If she applied as you have stated then she cannot expect to pay less tax.

    First port of call would probably be to check exactly what she has done.
    Originally posted by Dazed and confused
    She isn't paying less tax but has had to pay tax on the backdated lump sum.
    Originally posted by Robson65
    She isn't paying less tax but she's had to pay tax on the backdated lump sum ?
    I almost had a psychic boyfriend but he left me before we met.
    • polymaff
    • By polymaff 7th Jan 18, 8:14 PM
    • 2,119 Posts
    • 921 Thanks
    polymaff
    She isn't paying less tax but has had to pay tax on the backdated lump sum.
    Originally posted by Robson65
    She isn't paying less tax but she's had to pay tax on the backdated lump sum ?
    Originally posted by Robson65
    First time I've ever seen someone querying his/her own comments
    Last edited by polymaff; 07-01-2018 at 8:16 PM.
    • Robson65
    • By Robson65 7th Jan 18, 8:23 PM
    • 103 Posts
    • 727 Thanks
    Robson65
    Had a tablet for Christmas! Haven't got to grips with it yet !
    I almost had a psychic boyfriend but he left me before we met.
    • RK166
    • By RK166 10th Jan 18, 12:03 PM
    • 1 Posts
    • 0 Thanks
    RK166
    Hi

    Does anybody know would I be entitled to this if my wife is not currently a British citizen but is living in the UK with me ?
    • Alter ego
    • By Alter ego 10th Jan 18, 12:28 PM
    • 2,380 Posts
    • 2,355 Thanks
    Alter ego
    Hi

    Does anybody know would I be entitled to this if my wife is not currently a British citizen but is living in the UK with me ?
    Originally posted by RK166
    Should be if she has an NI number.
    Ignore me if you like, it's not the real me anyway.
    • Brighton belle
    • By Brighton belle 10th Jan 18, 5:09 PM
    • 5,116 Posts
    • 25,192 Thanks
    Brighton belle
    Hope someone can help - I can't quite understand how it says if you earn less than £11,00 a year you can transfer £1,100 of your tax allowance to your spouse. But what if you have earned £10,800, wouldn't transfering that much of your tax allowance mean you end up paying tax?
    I try to take one day at a time, but sometimes several days attack me at once
    • molerat
    • By molerat 10th Jan 18, 5:35 PM
    • 18,802 Posts
    • 12,981 Thanks
    molerat
    Hope someone can help - I can't quite understand how it says if you earn less than £11,00 a year you can transfer £1,100 of your tax allowance to your spouse. But what if you have earned £10,800, wouldn't transfering that much of your tax allowance mean you end up paying tax?
    Originally posted by Brighton belle
    Yes but the person transferred to will pay less tax and, using the figures you quote, between you would be £40 better off.
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    • Brighton belle
    • By Brighton belle 10th Jan 18, 6:07 PM
    • 5,116 Posts
    • 25,192 Thanks
    Brighton belle
    Thanks Molerat. I understand better now.
    I try to take one day at a time, but sometimes several days attack me at once
    • Dazed and confused
    • By Dazed and confused 10th Jan 18, 6:55 PM
    • 2,643 Posts
    • 1,266 Thanks
    Dazed and confused
    And if your £10,800 included any savings interest or dividend income then it could be more than £40 as that income would be taxed (in 2016:17 or 2017:18) at 0%.
    • Brighton belle
    • By Brighton belle 10th Jan 18, 8:31 PM
    • 5,116 Posts
    • 25,192 Thanks
    Brighton belle
    Thanks dazed and confused. It's all making abit more sense now.
    I try to take one day at a time, but sometimes several days attack me at once
    • Dazed and confused
    • By Dazed and confused 10th Jan 18, 8:50 PM
    • 2,643 Posts
    • 1,266 Thanks
    Dazed and confused
    One thing to remember in your situation is that you will get a bill for £180 and your spouse will get (assuming they paid enough tax and they paid the correct amount) about £220 tax refund.

    So you need really trust your spouse financially cause if they bank the refund and spend it on themselves then you're £180 worse off
    • kezzygirl
    • By kezzygirl 13th Jan 18, 9:20 AM
    • 663 Posts
    • 701 Thanks
    kezzygirl
    Which one of you cancelled it ?https://www.gov.uk/marriage-allowance/if-your-circumstances-change

    So if he cancelled it then he will get a bill for all received since first starting, if you cancelled it will run to the end of this FY and he will have to pay back this year's if he is now a higher tax payer.
    Originally posted by molerat

    My husband transferred some of his allowance to me, as I am the higher earner. He has cancelled it online as his income has now increased to the level where it is pointless transferring to me. I continue to be the higher earner between us. It states that he will stop transferring the allowance to me at end of april 2018- will we have to pay any of the allowance back?
    • Consumerist
    • By Consumerist 13th Jan 18, 12:55 PM
    • 4,843 Posts
    • 2,388 Thanks
    Consumerist
    My husband transferred some of his allowance to me, as I am the higher earner. He has cancelled it online as his income has now increased to the level where it is pointless transferring to me. I continue to be the higher earner between us. It states that he will stop transferring the allowance to me at end of april 2018- will we have to pay any of the allowance back?
    Originally posted by kezzygirl
    Your husband will just continue to pay the additional tax through his PAYE until the end of the tax year (5th April, not end of April) and you will continue to pay less tax through your PAYE. There should be no other tax adjustments needed.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • shicky
    • By shicky 14th Jan 18, 10:53 PM
    • 76 Posts
    • 23 Thanks
    shicky
    Sorry for the basic question on this, my wife is unemployed due to illness and I earn over the limit mention. That said, I put a LOT of money into my pension as obviously with my wife not working, the future is a concern. I assume my pension payments and student loan payments are not considered? If they were, I don't get anywhere near the higher tax bracket?

    I'm assuming we're ineligible but thought it worthwhile to double check
    • Dazed and confused
    • By Dazed and confused 14th Jan 18, 10:59 PM
    • 2,643 Posts
    • 1,266 Thanks
    Dazed and confused
    Student loan isn't relevant but pension usually is.

    What type of pension are you talking about? Company scheme where pension is deducted before tax is calculated, personal pension/SIPP or something else?

    Your wife needs to be careful about which year(s) she applies for if you could benefit. Just because she is unemployed today doesn't necessarily mean she should apply right back to year 1. It is her taxable income in each tax year that is important not her current situation.
    • shicky
    • By shicky 15th Jan 18, 7:33 AM
    • 76 Posts
    • 23 Thanks
    shicky
    Student loan isn't relevant but pension usually is.

    What type of pension are you talking about? Company scheme where pension is deducted before tax is calculated, personal pension/SIPP or something else?

    Your wife needs to be careful about which year(s) she applies for if you could benefit. Just because she is unemployed today doesn't necessarily mean she should apply right back to year 1. It is her taxable income in each tax year that is important not her current situation.
    Originally posted by Dazed and confused
    The pension does matter? Interesting! This is a company scheme where amounts are deducted before tax. I'm a bit surprised given I could just change my percentage down from 25% and then end up ineligible with my wife for the marriage allowance.

    Thank you for making the point on tax years, I'm usually decent at these things but much better to have someone who has been through it before point out the common pitfalls.
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