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At risk of asking a stupid question ........

Marriage allowance transfer & PAYE coding

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My neighbours have asked me to check their 2020/21 PAYE codes as they have given up trying to get through to HMRC to seek clarity on the situation. 

I normally have no problem understanding PAYE code adjustments, but I am confused to see the following disparate Marriage Allowance adjustments in their individual codes in respect of the transfer of the husband's allowance to his wife : 


Husband's code includes £1,250  transfer of allowance deduction which is just as I would expect 

Wife's code includes £610 transfer of allowance addition - this I don't understand . 

As it is a condition of the marriage allowance transfer that both parties to the transfer must be basic-rate taxpayers, why is the addition to the wife's code only £610 and not £1,250 ?  

I feel rather stupid having to ask this question, but it's got me beat. What am I missing here that should be obvious to me ????







Replies (4)

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Hallerud at Easter
16th Jun 2020 14:38

Are they both in Scotland.?

I am as stumped as you but then thought, what if HMRC coding wrongly think wife is HR taxpayer (not that they ought given rules re allowance transfer, but lets assume they are having a bad day)

Looking at numbers one would expect £625 in England, but in Scotland, where HR rate is 41%, a 610 code adjustment @41% is £250.10 and a £1,250 adjustment at 20% is £250.

I suspect I am clutching at straws here but can spot nothing else that makes any sense.

Thanks (2)
Replying to DJKL:
By L Haldane
16th Jun 2020 14:45

Yes, we are in Scotland, and I think you have nailed it.

It's the only logical (illogical given the rules !!) explanation.

Thank you for your help.

Thanks (0)
Replying to L Haldane:
By lionofludesch
16th Jun 2020 18:37

And is she a higher rate taxpayer ?

Does her income fall between the Scottish and English thresholds ?

I reckon the higher rate taxpayer thing is measured at UK rates - ie, the English/NornIrish rates.

Thanks (1)
Replying to DJKL:
By lionofludesch
16th Jun 2020 18:38

DJKL wrote:

Are they both in Scotland.?

Brilliant !!

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