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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 2nd Jun 15, 4:39 PM
    • 238Posts
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    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



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    Thanks folks ,
Page 59
    • molerat
    • By molerat 17th Jan 18, 6:11 PM
    • 18,563 Posts
    • 12,720 Thanks
    molerat
    molerat

    2018-19 will give £1185 to you and as she earns less than £11850 you will still be around £9394 better off as a couple.

    According to gov.uk it is £1190 next year, not £1185

    https://www.gov.uk/government/publications/autumn-budget-2017-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances
    Originally posted by Dazed and confused
    An extra £1 better off then
    www.helpforheroes.org.uk/donations.html
    • polymaff
    • By polymaff 17th Jan 18, 7:28 PM
    • 2,082 Posts
    • 907 Thanks
    polymaff
    Just an aside. The note to the £1,190 states:

    "A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rates, can transfer .. ".

    How cack-handedly HMRC finally sort-of admits that they got it wrong in all their advice for over a year....

    (and STILL haven't got it right ! )
    • aliS
    • By aliS 26th Jan 18, 5:13 PM
    • 1 Posts
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    aliS
    Hi
    I wonder if anyone can explain to me what will happen in this scenario?
    My husband is/was self employed, up until January 2016 he was earning in the region of £21,000 per year.
    I was employed part time, earning < £6000 a year. In 2016 I became self employed for a few hours a week in addition to my employed work. My income increased to £8000 per year. I also transferred my marriage allowance to my husband.
    All was going fine until December 2016 when husband lost his contract and ceased earning. By April 2017 husband was still not working so I increased my self employed hours and applied online for my tax allowance back. I naively assumed I would get it back immediately, when after a couple of months this hadn't happened, I phoned HMRC and was told I would have it back April 2018.
    Husband has been signed off work since June with depression & anxiety, he's now claiming ESA. His total earnings for this year are £1400. It's unlikely he'll work anytime soon.
    Of course I've increased my self employed hours yet again and now anticipate my 2017/18 income to be in the region of £11,800 . But of course I am still on my reduced tax allowance. I have just paid a balancing payment of £125 . A bit annoying considering this is our worst year ever , income wise, and I'm paying tax!
    What will happen in April? Will HMRC ask for more money from m? Or will they take into account husband wasn't earning?
    Thank you
    • Dazed and confused
    • By Dazed and confused 26th Jan 18, 5:52 PM
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    Dazed and confused
    It seems from your post that your hubby would have still benefited from the Marriage Allowance in 2016:17 (it might have cost you £125 but saved him more than that?).

    What will happen in April? Will HMRC ask for more money from m? Or will they take into account husband wasn't earning?

    Unless he is a higher rate payer (clearly not from your post) what your hubby earns is pretty much irrelevant, you agreed to give away part of your allowance and have now stopped it but the change only takes effect from the start of the next tax year (this appears to be normal looking at the link below).

    Your husband could wait until after April 2018 and then apply himself for 2017:18 as a one off,essentially you will get the allowance back just in the form of a tax deduction on your 2017:18 self assessment bill.

    Or you could follow the "If your income changes" part of the HMRC guidance here and contact HMRC for their advice?

    https://www.gov.uk/marriage-allowance/if-your-circumstances-change
    Last edited by Dazed and confused; 26-01-2018 at 5:55 PM.
    • sheramber
    • By sheramber 27th Jan 18, 3:42 PM
    • 4,670 Posts
    • 3,503 Thanks
    sheramber
    https://www.gov.uk/marriage-allowance/if-your-circumstances-change
    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.

    So the husband will lose the marriage allowance for the earlier years.
    • polymaff
    • By polymaff 27th Jan 18, 4:22 PM
    • 2,082 Posts
    • 907 Thanks
    polymaff
    This is HMRC making up on the hoof - again.

    The MAT legislation provides no mechanism by which the recipient can reject MAT.

    The only one who can cancel it is the party who elects for MAT in the first place:

    "(4)An election may be withdrawn only by a notice given by the individual by whom the election was made."
    Last edited by polymaff; 27-01-2018 at 4:30 PM.
    • Wibblywobble
    • By Wibblywobble 8th Feb 18, 12:54 PM
    • 8 Posts
    • 1 Thanks
    Wibblywobble
    Change of circumstanes MTA
    My husband transferred the MTA to me in January 2017 but his employed income increased during the year to basic rate. Obviously we are no longer eligible for the MTA. My questions are:
    1. Will HMRC automatically remove the MTA from April 2018?
    2. Will I have to repay some tax and if I do, will he be able to reclaim some back effectively balancing out the difference?
    Thankyou!
    • Consumerist
    • By Consumerist 8th Feb 18, 1:29 PM
    • 4,831 Posts
    • 2,384 Thanks
    Consumerist
    My husband transferred the MTA to me in January 2017 but his employed income increased during the year to basic rate. Obviously we are no longer eligible for the MTA. My questions are:
    1. Will HMRC automatically remove the MTA from April 2018?
    2. Will I have to repay some tax and if I do, will he be able to reclaim some back effectively balancing out the difference?
    Thankyou!
    Originally posted by Wibblywobble
    Providing your husband's total taxable income (including such things as savings interest) is below £11,850 there is some tax advantage to be gained between you. If his taxable income is £11,850+ then he will pay more tax and you will pay less tax that if he didn't claim Marriage Allowance. In theory, as a couple, there should be no tax advantage by claiming the allowance in the latter circumstances.

    I don't think HMRC will automatically cancel the allowance; either of you can cancel but I understand that it could be effective sooner if the recipient of the transfer cancels.
    Last edited by Consumerist; 08-02-2018 at 1:35 PM.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • polymaff
    • By polymaff 8th Feb 18, 2:06 PM
    • 2,082 Posts
    • 907 Thanks
    polymaff
    My husband transferred the MTA to me in January 2017 but his employed income increased during the year to basic rate. Obviously we are no longer eligible for the MTA.
    Originally posted by Wibblywobble
    Not true - unless he is now a higher-rate taxpayer and/or non-UK-resident for tax purposes in the relevant tax year.
    • Adrian Bower
    • By Adrian Bower 11th Feb 18, 12:15 PM
    • 1 Posts
    • 0 Thanks
    Adrian Bower
    Effect on working tax credit
    Hi,

    My wife and I have just been told about marriage benefit and are interested in applying. Before we do though, could anyone tell me if getting marriage benefit has a knock on effect to your working tax credits. We don't get much as it is (less than £30 a week), but rely on it to help with our rent, and so are wary of losing out more per year than we'd actually gain, especially from an initial large payout from marriage benefit.
    • Dazed and confused
    • By Dazed and confused 11th Feb 18, 12:39 PM
    • 2,555 Posts
    • 1,226 Thanks
    Dazed and confused
    Tax credits are based on gross/pre-tax income so this should have no bearing on any tax credit entitlement.

    But it may affect you if you move onto Universal Credit.

    And don't forget there is no "we" with Marriage Allowance. One person, the one willing to give up part of their Personal Allowance, applies and the other gets a bit knocked off their tax bill.
    • amm1964
    • By amm1964 14th Feb 18, 11:10 AM
    • 1 Posts
    • 0 Thanks
    amm1964
    Backdated money question
    Hi, hope someone can clarify something I'm not sure about regarding getting the backdated allowance. I completed my self-assessment last month and clicked on the option to pass my allowance to my wife as I've been a non-taxpayer for the past couple of years. I put in her details and she'll get my allowance from now on. Problem is it didn't (as far as I recall) say anything on the return form about my receiving the previous year's money. Does anyone know if I need to do something to get this or do HMRC automatically look at my past returns and send me a cheque? Sorry if I'm being thick but really don't want to miss out on the possibility of a refund.
    • Dazed and confused
    • By Dazed and confused 14th Feb 18, 3:41 PM
    • 2,555 Posts
    • 1,226 Thanks
    Dazed and confused
    Think you've misunderstood a few things.

    As I understand it an application via your self assessment return applies to that tax year only.

    If you want it apply for this year (2017:18) you'd have to apply again on your next tax return or apply via gov.uk (and confirm it when you complete your next return). If you apply in the current tax year I think it does then carry on into the next year.

    Problem is it didn't (as far as I recall) say anything on the return form about my receiving the previous year's money. Does anyone know if I need to do something to get this or do HMRC automatically look at my past returns and send me a cheque?

    You cannot ever get a tax refund by applying for Marriage Allowance, you either pay the same amount of tax or pay more tax but never less. Your spouse is the one who would receive any refund.

    If you want to apply for the previous year (2015:16 was the first year Marriage Allowance existed) you would have to contact HMRC to check how you do this, you would normally amend your return but the time limit for doing that has passed however it may be different for marriage allowance??
    • Mr.K.E.
    • By Mr.K.E. 14th Feb 18, 6:46 PM
    • 1 Posts
    • 0 Thanks
    Mr.K.E.
    Claiming M.A.
    I am trying to ask a question here, but the site is not exactly user- friendly!
    My wife and I were both born after 1935. We are both retired. We both recieve a state pension. She also receives a small works pension and I recieve a Forces pension. I am the tax - payer in our current situation. We are thinking of applying for the Marriage Allowance but have concerns as to whether we will gain or lose by this.Please advise.
    • Dazed and confused
    • By Dazed and confused 14th Feb 18, 6:56 PM
    • 2,555 Posts
    • 1,226 Thanks
    Dazed and confused
    There is no "we" with Marriage Allowance.

    From what you have said your wife needs to consider her income on a year by year (tax year) basis as by applying she is giving up 10% of her Personal Allowance.

    If her total taxable income is less than 90% of the Personal Allowance then she should remain a non tax payer. If she is over that 90% limit then she may become liable to tax but if she had savings or dividend income this may be taxed at a special 0% tax rate so it may still be worth applying.

    Each year needs to be looked at separately as her income (for the years Marriage Allowance applies to) may have fluctuated. It is surprising how quickly things get forgotten a year or two after the event!

    If she applies you get an amount knocked off your tax bill. In the first year of Marriage Allowance (2015:16) this was worth £212 and it is worth £23 this tax year. You only get the full benefit if you paid that much tax.

    If you post a single years figures the benefit of her applying can be checked.
    • enthusiasticsaver
    • By enthusiasticsaver 15th Feb 18, 11:54 AM
    • 6,369 Posts
    • 13,018 Thanks
    enthusiasticsaver
    No questions from me but I just want to say how impressed I was how easy it was to claim the married allowance. Both DH and I are now retired and only income are our DB pensions which we have both taken early. We have 6 and 8 years until spa for both of us.

    My DH receives a pension of £23600 so is a basic rate tax payer now. I receive around £4800 as a pension but worked until December but calculated my earnings/pension combined would be around £10200 for 2017/2018. I just registered on government gateway site and went through the online calculation and claimed the marriage allowance for 2017/2018 going forward. It took about 10 minutes including the registering on the site. I also managed to check my state pension at the same time. I think HMRC get a real knocking sometimes but on this occasion it surprised me with how efficient the process was.
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    • MothballsWallet
    • By MothballsWallet 16th Feb 18, 7:13 PM
    • 12,300 Posts
    • 16,562 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.
    Originally posted by MothballsWallet
    Unfortunately, sheramber's link is for the Married Couples Allowance (MCA) and not the Marriage Allowance (MA)

    According to the HMRC helpline, there is no paper form for MA, only online
    Always ask yourself one question: What would Gibbs do?

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    • Dazed and confused
    • By Dazed and confused 17th Feb 18, 11:13 AM
    • 2,555 Posts
    • 1,226 Thanks
    Dazed and confused
    Or telephone. Pretty sure other posters earlier in this thread (and others) have phoned HMRC to make an application.
    • Blush2783
    • By Blush2783 6th Mar 18, 1:31 PM
    • 17 Posts
    • 5 Thanks
    Blush2783
    HMRC driving me nuts!
    Hi, I finally got round to applying online to transfer my marriage tax allowance to my husband in December. Got the confirmation email from HMRC that i had applied and left it. Last month I thought it was 2 months since Id applied and we'd heard nothing so I looked up my online account and found no mention of my application on the system so I decided to call them. It went through to the automatic voice questions and asked what my NI number was, I said what it was several times and then it transferred me to an actual person who said they couldn't log into my account and someone would call me back within 3 days.

    Got a call back, explained the issue and he looked it up and said he could see that I had applied but nothing had been done yet and it had no record of me applying for past years (I had a confirmation email). He said he would generate it on the phone and my husband would get his revised tax code etc but if nothing happened to call back in 10 days. That was yesterday and once again we've heard nothing.

    I've just called yet again and today's 'fun' was being told by the woman in their call centre that I was giving her the wrong NI number as its not on their system. I was not. Its the same number on the plastic card I'd been sent at 16 years old that I've used ever since and I even had my HMRC online account up in front of me with it up on the screen! She said she couldn't help me until I gave her the correct number so I said to her that she would have to get someone who could to speak to me to sort it out. After speaking to someone in her office she then said I would get a call back within 3 days.

    I cant believe that when they want money from you they are very efficient but in order to get a rebate they have so far taken 3 months and we are still none the wiser.
    • Consumerist
    • By Consumerist 6th Mar 18, 1:56 PM
    • 4,831 Posts
    • 2,384 Thanks
    Consumerist
    . . . I've just called yet again and today's 'fun' was being told by the woman in their call centre that I was giving her the wrong NI number as its not on their system. . .
    Originally posted by Blush2783
    You could have a look on, preferably your latest, PAYE Coding Notice from HMRC to confirm that they have the correct NI Number for you.
    Last edited by Consumerist; 06-03-2018 at 1:58 PM.
    Warning: In the kingdom of the blind, the one-eyed man is king.
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