Tax issues with Marriage Allowance

As examples let say my gross salary is 52k per annum. I then pay 7k into my pension which is relief at source with Scottish Widows claiming basic tax on my behalf. I then claim the additional high rate back via HMRC with a change in tax code.
So in my mind my taxable income is then 45k

Have I got it completely wrong?

Yes. Pension contributions to a "relief at source" scheme do not reduce your taxable income.

They increase the amount of basic rate tax you can pay. Which in turn can reduce, or completely negate, the amount of higher rate tax payable.

You say "I then pay 7k into my pension". So this would become a gross contribution of £8,750 once the pension company add the basic rate tax relief. Or do you actually mean you contributed £7,000 including the basic rate tax relief?

Gross salary really has no relevance to someones tax position. Is the 52k what is shown, or is going to be shown, on your P60?

It would be helpful if you could enlighten us with which tax year this problem relates to and what role you play in the Marriage Allowance application - are you the applicant or the recipient. You don't actually say.

And finally what other taxable income do you have in the tax year concerned?

Income such as dividends taxable at one of the 0% tax rates can have a big impact on things like this. You can lose entitlement to Marriage Allowance by being classed as a "higher rate taxpayer" but this doesn't always mean you have to actually be liable to pay any higher rate tax

https://www.litrg.org.uk/tax-guides/tax-basics/what-tax-allowances-am-i-entitled

The marriage allowance for 2018/19 is £1,190 and it enables a spouse or civil partner who is not liable to income tax at a rate higher than the basic rate to transfer £1,190 of their personal allowance to their spouse or civil partner. The recipient spouse or civil partner also must not be liable to income tax above the basic rate. The maximum tax saving you can get as a couple from the marriage allowance is £238 for the year.

Note that the recipient spouse or civil partner does not receive an extra personal allowance of £1,190: instead they receive a tax credit of £238 that can be set against their tax liability. If the full tax credit cannot be used by the recipient, the balance will not be repaid.

The question is were you liable to pay income tax above the basic rate?

https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2016-17/tax-and-tax-credit-rates-and-thresholds-for-2016-17

You posts are still a little confusing.

In one you say,

No other taxable income and I am the recipient of the allowance.

So what is the problem? Or do you actually mean you were the recipient of the (Marriage) allowance but this has been taken off you?

If so what have you received from HMRC? A P800 calculation?

And you do understand that a Marriage Allowance recipient doesn't actually receive any of their spouses Personal Allowance. They get a fixed deduction of their tax liability. A maximum of £220 in 2016:17.

If you have received a P800 can you post the details of the calculation. Its possible you think something has been taken away and it hasn't.

But there could be a problem. It still isn't clear.

Firstly you cannot "claim" Marriage Allowance. If necessary your spouse would have to apply again.

But if your P60 showed £45k then you would be higher rate for 2016:17.

The Personal Allowance was £11,000 and basic rate band was £32,000 so income of £45k puts you firmly into the higher rate band.