Share this content
15

Marriage Allowance and income level.

Didn't find your answer?

I claimed Marriage Allowance for 17/18.Despite HMRC software accepted claim,their calculation does not.Result £230 plus interest showed as owing.I have phoned HMRC on several occasions.Officers keep on referring to the income level.I referred them to what the legislation actually says (rate of tax).Each time Officer has promised to refer to specialist section.Result Nothing.Still shows owing.Tried ADR section.Response: claim not within their criteria,although they have promised to refer to Personal Tax section.What a farce,I know for SBA.But why should I give in!

Replies (15)

Please login or register to join the discussion.

Flag of the Soviet Union
By thevaliant
18th Jul 2019 13:28

I'm personally in a weird one.

My total income is above what would normally be called the higher rate threshold.

However, my wife doesn't work so I claim the MA from her. How? She is also visually impaired, so I get the blind persons allowance transferred to me.

Voila. Income of £47k, but BPA keeps me a basic rate payer.

I am under PAYE however so I haven't had to have the argument. (You are right. It is what rate you pay at, not total income).

Thanks (1)
avatar
By Wanderer
18th Jul 2019 14:35

You say 'I claimed'.
Could the issue actually be that your spouse hasn't transferred it to you?

Thanks (0)
avatar
By SXGuy
18th Jul 2019 15:05

Two claims, Transferrer, and Transferee.

Thanks (0)
avatar
By emanresu
18th Jul 2019 15:38

If YOU have claimed, then your personal allowance will fall and you may well then owe extra tax.

That's what you've implied. Was it what you meant?

Thanks (1)
avatar
By Michael Davies
18th Jul 2019 17:33

No sorry.My wife elected to “surrender “ the Marriage Allowance to me.I only wish her income was sufficient to cover her personal allowance.She is one of those women caught by the State Pension deferral scandal.Probably will cost her/us £60 k,over 6 years.
Nobody in Govt cares,but that is another subject.

Thanks (0)
avatar
By Michael Davies
18th Jul 2019 17:34

No sorry.My wife elected to “surrender “ the Marriage Allowance to me.I only wish her income was sufficient to cover her personal allowance.She is one of those women caught by the State Pension deferral scandal.Probably will cost her/us £60 k,over 6 years.
Nobody in Govt cares,but that is another subject.

Thanks (0)
avatar
By emanresu
18th Jul 2019 17:50

Then to whom does your:

"Result £230 plus interest showed as owing"

apply?

Thanks (0)
Replying to emanresu:
avatar
By Not Anonymous
18th Jul 2019 22:07

emanresu wrote:

Then to whom does your:

"Result £230 plus interest showed as owing"

apply?

Hopefully the op will clarify however what I think they may mean is

• wife applied for Marriage Allowance during (or before) 2017:18
• op had Marriage Allowance included provisionally in their 2017:18 tax code
• op filed 2017:18 SA return and Marriage Allowance (rightly or wrongly) is no longer deemed due
• as Marriage Allowance was provisionally included in the 2017:18 tax code but wasn't included in the Self Assessment calculation the op now owes £230 (plus interest)

Or

• op submitted return and paid the liability they believed was due
• Marriage Allowance has been removed so the tax due is £230 more
• op paid the expected amount leaving £230 (plus interest) now due

I think the most pertinent question is whether the op included any dividend income on their 2017:18 SA return. And if so how was this shown on the SA302 calculation?

If 0% within the higher rate band then that is the reason Marriage Allowance isn't due. Although if that is the reason why HMRC couldn't explain it to the op is a mystery.

Thanks (0)
avatar
By Michael Davies
18th Jul 2019 23:00

That final comment is interesting .
So you are saying that if the dividend falls in the higher tax band ,even though (because of the £5000 limit)it is not chargeable to tax.Marriage Allowance is not due.
Is that what you are saying ?
So a £70 dividend say;could lose you a tax deduction worth £230 .
This can’t be right as the HMRC calc gives the relief.Although the demand does not reflect this.
Did Geo Osborne ever realise what for SBA,the level of problem such a cosmetic tax relief would cause.
I will have a look at the legislation again !

Thanks (0)
Replying to Michael Davies:
avatar
By Not Anonymous
18th Jul 2019 23:30

Michael Davies wrote:

That final comment is interesting .
So you are saying that if the dividend falls in the higher tax band ,even though (because of the £5000 limit)it is not chargeable to tax.Marriage Allowance is not due.
Is that what you are saying ?
So a £70 dividend say;could lose you a tax deduction worth £230 .
This can’t be right as the HMRC calc gives the relief.Although the demand does not reflect this.
Did Geo Osborne ever realise what for SBA,the level of problem such a cosmetic tax relief would cause.
I will have a look at the legislation again !

If it wasn't "chargeable to tax" it wouldn't be in the higher rate band. It would have been covered by the Personal Allowance.

It sounds as though you have some dividend income charged at the dividend nil rate. So no tax is payable on the dividend income but it is taxed within the higher rate band.

If certain circumstances it can be beneficial to allocate some of the Personal Allowance to the dividend income moving this out of the higher rate band. But if this means non savings income or savings interest is taxed at higher rate Marriage Allowance still wouldn't be due (there is no similar quirk with the savings nil rate, if savings interest is taxed at 0% in the higher rate band that shouldn't prevent Marriage Allowance being due).

You need to look at the updated legislation, FA2014 I think.

Thanks (0)
Replying to Not Anonymous:
avatar
By Michael Davies
19th Jul 2019 11:27

S55b2b states “liable”.
What does liable mean ?
An obligation to incur ?
Because of the dividend nil rate band ,there is no liability or obligation to pay higher rate tax.
I suppose if HMRC Personal Tax ever get into gear.I will receive an interpretation of the legislation.
Just as a matter of interest.I always thought dividends had to be taxed as the top slice of income ?
Don’t you just love Tax.How often do we get different interpretations on this site ?
Glad I am on the tail end of my career.

Thanks (0)
avatar
By Michael Davies
18th Jul 2019 23:09

I don’t think S55(2)B says that.

Thanks (0)
Replying to Michael Davies:
avatar
By emanresu
19th Jul 2019 15:29

In section 55B(2) (transferable allowance: conditions for entitlement to tax reduction)—

(a)in paragraph (b) (individual liable to tax only at certain rates), after “the basic rate,” insert “ the dividend nil rate, ”, and

(b)after paragraph (b) insert—

“(ba)if for the tax year the individual is liable to tax at the dividend nil rate, the individual would for that year neither be liable to tax at the dividend upper rate, nor be liable to tax at the dividend additional rate, if section 13A (dividend nil rate) were omitted,”.

Thanks (1)
avatar
By PAMDILL
19th Jul 2019 12:43

I am in the same position, only my husband transferred his personal allowance to me as he is disabled. I am not a higher rate tax payer, nowhere near it. I filed my 2018/19 SA earlier in the month and thought at first the allowance had fell off my tax code as it was no longer in the Personal Allowance section of my tax calculation.

I also make regular Gift Aid payments and this year they have shown my tax due then shown the Marriage Allowance Transfer and the tax due on Gift Aid payments and deducted the higher of the two amounts from the original tax due.

Thanks (0)
Replying to PAMDILL:
avatar
By Michael Davies
19th Jul 2019 13:47

If you are not even close to higher rate,try taking out the gift aid payments,as they are only effective for HR taxpayers.Leave the Marriage Allowance claim in.
I assume your husband has made the surrender ?
If all else fails phone HMRC up (and wait about an hour ).Make sure your husband is with you and have both your NI numbers with you.If you are nowhere near HR,this should work.

Thanks (0)
Share this content