Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • 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 65
    • polymaff
    • By polymaff 18th Jul 18, 2:52 PM
    • 2,334 Posts
    • 1,030 Thanks
    polymaff
    Beware when applying for allowance ! My wife doesn't pay tax and we moved her allowance into my tax code !
    She received a letter from tax office saying she has to pay £226.80 for tax year 2017/18 !!!!!
    I only received £45 rebate on my tax code for that year .
    Basically tax office told her , because she moved her allowance into mine it reduces her allowance into the paying income tax bracket ! It doesn't make us better off as a couple and now we have to find £226.80 to pay back to tax office as they won't reverse the claim for last year !
    Originally posted by Johnr1996
    The result of not looking before you leap, but I doubt that you (plural) have lost out - other than wasting your life-spans.

    You almost certainly will have got the matching credit. The £45 figure is due to more than just receiving the MAT benefit.
    • JimmyTheWig
    • By JimmyTheWig 18th Jul 18, 3:09 PM
    • 11,778 Posts
    • 11,330 Thanks
    JimmyTheWig
    I only received £45 rebate on my tax code for that year .
    Originally posted by Johnr1996
    Is your income only just into the paying tax bracket?
    • mikewalnut
    • By mikewalnut 18th Jul 18, 3:15 PM
    • 2 Posts
    • 0 Thanks
    mikewalnut
    rebate.
    I'm a taxpaying pensioner, and my wife is a nonTaxpaying pensioner. OnMarch 26th I applied on line for the allowance. On my next pension payment, my tax allowance had changed, but I still haven't received the repayment by cheque, which the website says should happen. What if any action should I take? Is a delay of this sort normal?
    • Dazed and confused
    • By Dazed and confused 18th Jul 18, 9:43 PM
    • 3,315 Posts
    • 1,678 Thanks
    Dazed and confused
    mikewalnut

    OnMarch 26th I applied on line for the allowance

    You appear to have completely misunderstood how Marriage Allowance works. Anyone who applies for Marriage Allowance either pays the same tax or extra, you can never be due a tax refund as a result of applying for it.

    Per gov.uk your spouse can expect any refund she is due anytime between now and November (assuming he/she is not completing Self Assessment returns).

    https://www.gov.uk/tax-overpayments-and-underpayments
    • mikewalnut
    • By mikewalnut 19th Jul 18, 3:05 PM
    • 2 Posts
    • 0 Thanks
    mikewalnut
    The thing is, I have received an acknowledgement from HMRC, and my tax paid on my pension (monthly) has decreased. So let me rephrase my question. Assuming that a rebate is due, does a wait from March this year until now seem to be reasonable? Is it to be expected?
    • jimmo
    • By jimmo 19th Jul 18, 9:40 PM
    • 2,001 Posts
    • 2,424 Thanks
    jimmo
    I'm afraid so. When you made your claim on 26 March it was already too late for your 2017/18 coding to be amended but too early for a 2017/18 repayment to be calculated. Your records will have been noted for the annual review along with many, many others.
    I know that the annual review has started because I have had my repayment as mentioned in post#1278. (see below). Yours could be anytime in the next few months or you could chase them up.
    I got my 2017/18 repayment this week so they have at least started the 17/18 review.
    If you haven't already done so, its worth signing up for a personal tax account and for email alerts.
    I got the email alert on Wednesday, did the necessary and the money was in my bank account on Monday.
    The P800 arrived by snail mail the following day (Tuesday).
    If you don't sign up it will take 2 months for them to issue a cheque.
    https://www.gov.uk/personal-tax-account
    Originally posted by jimmo
    • Sireesha
    • By Sireesha 23rd Jul 18, 3:12 PM
    • 1 Posts
    • 0 Thanks
    Sireesha
    Does MA has got any impact on the Indefinite Leave to Remain (ILR) application
    Hello Forum,

    I've got couple of questions regarding Marriage Allowance, appreciate if any one could provide response.
    1) My partner is on Tier 2 General visa and working full time. I'm on Tier 2 General dependant visa and not working (i.e. my income is 0). Am I eligible to apply for the Marriage Allowance ?? I read somewhere that MA is NOT a public fund.

    2) If eligible, applying for MA now will have any impact on the future applications for Indefinite Leave to Remain after living in UK for 5 years on the Tier 2 General visa.?

    Thanks,
    Siri.
    • Consumerist
    • By Consumerist 23rd Jul 18, 4:31 PM
    • 4,986 Posts
    • 2,478 Thanks
    Consumerist
    Hello Forum,

    I've got couple of questions regarding Marriage Allowance, appreciate if any one could provide response.
    1) My partner is on Tier 2 General visa and working full time. I'm on Tier 2 General dependant visa and not working (i.e. my income is 0). Am I eligible to apply for the Marriage Allowance ?? I read somewhere that MA is NOT a public fund.

    2) If eligible, applying for MA now will have any impact on the future applications for Indefinite Leave to Remain after living in UK for 5 years on the Tier 2 General visa.?

    Thanks,
    Siri.
    Originally posted by Sireesha
    As I understand it, providing you both have National Insurance Numbers and comply with the income limits, you are entitled to claim Marriage Allowance.
    This is a tax matter and I cannot see any connection with your status as a citizen.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • Susieg12345
    • By Susieg12345 2nd Aug 18, 11:16 AM
    • 1 Posts
    • 0 Thanks
    Susieg12345
    I applied for marriage allowance
    I applied for marriage allowance and got a tax bill for £ 220.20. I wasnít aware that because I had applied for a tax rebate for the tax they took off me for taking my private pension last year I shouldnít of applied for the marriage allowance this year so be careful.
    • DHolmes813
    • By DHolmes813 6th Aug 18, 6:57 PM
    • 1 Posts
    • 0 Thanks
    DHolmes813
    Marriage Allowance MHRC say I've paid too little tax.
    I was claiming the MA as my wife had stopped work back in 2015, so we decided to make uses of this allowance.

    My wife is now going back into work and I stopped the MA.

    I have now received Tax calculations for 6 April 2015 to 5 April 2016; 6 April 2016 to 5 April 2017 and 6 April 2017 to 5 April 2018, and they all say I've paid too little tax. Totals around £660 for the three years., which they say I have to pay back.

    Have I misunderstood the MA or have HMRC made a mistake!?
    Can anyone advise please.
    • Dazed and confused
    • By Dazed and confused 6th Aug 18, 8:20 PM
    • 3,315 Posts
    • 1,678 Thanks
    Dazed and confused
    I fear you have misunderstood.

    If you (as the receiver of MA) cancel it then it is cancelled back to day 1 which is the 2015:16 tax year.

    If your wife had cancelled it then it would have continued until the end of the tax year she cancelled it in and then reverted to normal from the start of the next tax year.

    As things stand it sounds like the calculations are probably correct but you may want to talk nicely to your wife and see if she is interested in applying for Marriage Allowance all over again!

    One small advantage of this is that she could in theory apply for just the 3 tax years which have already ended and not bother with the current tax year. You would both then get the standard Personal Allowance for 2018:19 and she could always apply again (for 2018:19 on its own) after the end of the year if it turns out it is beneficial for you (as a couple) to do this.
    Last edited by Dazed and confused; 06-08-2018 at 8:22 PM.
    • Theimp
    • By Theimp 7th Aug 18, 9:47 AM
    • 6 Posts
    • 19 Thanks
    Theimp
    We have been stung by the tax office even though they gave us the money after we filled out the forms.
    In the 1st year one person had to earn under £10,600 to be able to transfer the allowance to their partner. What they don't tell you is that the person who earns under £10,600 must also earn under 10% of that figure too so really in that first year one person must earn under £9,540. This 10% rule is not clear on HMRC website and I just hope no one else gets stung by this.
    • Dazed and confused
    • By Dazed and confused 7th Aug 18, 10:17 AM
    • 3,315 Posts
    • 1,678 Thanks
    Dazed and confused
    There is no such rule. You could both be earning £40k and still be eligible for Marriage Allowance but you almost certainly wouldn't be able to benefit from it.

    Generally a couple where the applicant is earning (as in wages/pension) between the standard Personal Allowance and reduced amount from applying for MA and the receiver is paying £238 or more in tax are no worse off as a couple.

    You will need to post some figures for anyone to check if you are actually worse off as a couple but imho it is unlikely.
    • Theimp
    • By Theimp 7th Aug 18, 10:56 AM
    • 6 Posts
    • 19 Thanks
    Theimp
    We were on the phone for an hour and they didn't budge on that 1st year. I quoted this site and HMRC and they insist we pay that 1st year back. They even agreed one of us was under £10,600 in that first year but insisted one of us had to ear £9,540 or below to be able to claim the allowance.
    This 10% rule applies for every year but we only got stung on the 1st year.
    If they are talking rubbish then who can I contact to sort this out because they were not budging on this.
    • Dazed and confused
    • By Dazed and confused 7th Aug 18, 2:42 PM
    • 3,315 Posts
    • 1,678 Thanks
    Dazed and confused
    Rules seem to be being made up that simply don't exist.

    As an example

    2015:16 tax year
    Mrs Theimp
    Taxable wages £10,000
    Personal Allowance £9,540
    Tax due on £460 = £92

    Mr Theimp
    Taxable wages £20,000
    Personal Allowance £10,600
    Tax due on £9400 = £1,880
    Less Marriage Allowance credit £212
    Net tax payable £1,668

    By applying Mrs Theimp has made herself liable to pay tax of £92 but Mr Theimp benefits by the Marriage Allowance credit of £212.

    As a couple Mr & Mrs Theimp are £120 better off.

    And hopefully Mr Theimp will pass some of his tax saving to Mrs Theimp

    To be honest it would be helpful if you could actually explain in simple terms what has happened, what paperwork have you received etc

    Have you ever been a higher rate payer?

    Have you (as the receiver of Marriage Allowance) ever cancelled it?
    • sheramber
    • By sheramber 7th Aug 18, 2:49 PM
    • 5,595 Posts
    • 4,246 Thanks
    sheramber
    If you already had the allowance transferred what prompted them to take it away again?

    You could try phoning again as you will probably get someone else who may be more informed. Phone lines are open 8am to 8pm but you can get an answer just before 8am.

    If that doesn't work then write a letter of complaint

    https://www.gov.uk/government/organisations/hm-revenue-customs/contact/complain-about-hmrc
    • polymaff
    • By polymaff 7th Aug 18, 5:09 PM
    • 2,334 Posts
    • 1,030 Thanks
    polymaff
    I was claiming the MA as my wife had stopped work back in 2015, so we decided to make uses of this allowance.

    My wife is now going back into work and I stopped the MA.

    I have now received Tax calculations for 6 April 2015 to 5 April 2016; 6 April 2016 to 5 April 2017 and 6 April 2017 to 5 April 2018, and they all say I've paid too little tax. Totals around £660 for the three years., which they say I have to pay back.

    Have I misunderstood the MA or have HMRC made a mistake!?
    Can anyone advise please.
    Originally posted by DHolmes813
    You've misunderstood.

    To understand MAT there are two areas you - and many - need to get clear. One is the difference between eligibility and possible benefit accrued. The other - the one you illustrate in your post - is who is who.

    When MAT is being set up there is no role for the beneficiary. From what you write, I'd guess that you (singular) were meant to be the beneficiary, in which case YOU (singular) didn't claim MAT.

    When MAT is being cancelled, both parties can apply:

    1 If the beneficiary applies then MAT is cancelled for the entire period that MAT was active and tax demands and rebates may happen.

    2 If the elector (HMRC's terminology) applies then the MAT ends at the end of the current tax year.

    Many have been fooled - by HMRC and the Lewises - into thinking that this is an easy couple of hundred quid. As many have discovered - it isn't.
    Last edited by polymaff; 07-08-2018 at 5:27 PM.
    • Theimp
    • By Theimp 8th Aug 18, 10:23 AM
    • 6 Posts
    • 19 Thanks
    Theimp
    After 3 years of getting the allowance we got a letter through the door stating we paid too little tax and that we owed £663.80.
    Using the figures that Dazed provided...

    2015:16 tax year
    Mrs Theimp
    Taxable wages £10,000
    Personal Allowance £9,540
    Tax due on £460 = £92

    Mr Theimp
    Taxable wages £20,000
    Personal Allowance £10,600
    Tax due on £9400 = £1,880
    Less Marriage Allowance credit £212
    Net tax payable £1,668

    Mrs Theimp wages were £10,400 NOT the £10,000 seen above. They claim the personal allowance is the figure Mrs Theimp must be earning(10%) for the £212 Marriage Allowance.
    After being on the phone for an hour the tax office still wanted the £212 from that first year and only the £212 from that first year.
    Last edited by Theimp; 08-08-2018 at 10:49 AM.
    • polymaff
    • By polymaff 8th Aug 18, 12:46 PM
    • 2,334 Posts
    • 1,030 Thanks
    polymaff
    After 3 years of getting the allowance we got a letter through the door stating we paid too little tax and that we owed £663.80.
    Using the figures that Dazed provided...

    2015:16 tax year
    Mrs Theimp
    Taxable wages £10,000
    Personal Allowance £9,540
    Tax due on £460 = £92

    Mr Theimp
    Taxable wages £20,000
    Personal Allowance £10,600
    Tax due on £9400 = £1,880
    Less Marriage Allowance credit £212
    Net tax payable £1,668

    Mrs Theimp wages were £10,400 NOT the £10,000 seen above. They claim the personal allowance is the figure Mrs Theimp must be earning(10%) for the £212 Marriage Allowance.
    After being on the phone for an hour the tax office still wanted the £212 from that first year and only the £212 from that first year.
    Originally posted by Theimp
    Read my post, above, and then stop using "we". You and your spouse are individuals. You'll not understand MAT whiles you conflate your (plural) tax affairs.
    • sheramber
    • By sheramber 8th Aug 18, 12:50 PM
    • 5,595 Posts
    • 4,246 Thanks
    sheramber
    Aside from the rights and wrongs of what you have been told to be clear on what has actually happened

    If the marriage allowance was taken away form your Wife to pass to you then it would now be due back to her if they have taken it away from you.

    So you have an underpayment but she should have an overpayment.

    after transfer of marriage allowance 10400 - less 9540 = 860 @ 20% = £172

    with MA transferred back to Mrs

    10400- 10600 no tax due

    so did Mrs T pay £172 tax

    and has that been refunded to her?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,085Posts Today

7,544Users online

Martin's Twitter
  • Yes (+ Blair's fear of being seen to impose a new 'tax') This rule will make the public cost of funding more reali? https://t.co/DE1VzzX4Do

  • Many asking "what does leaving EU actually mean for me?" both with or without a no-deal. The MSE guide to Brexit t? https://t.co/ULimpQPlHp

  • I'm very glad my poll today has caused such unity and consensus. It feels like a real moment of rapprochement in th? https://t.co/QVCzqsiVOi

  • Follow Martin