Husband and wife clients have been eligible for the marriage allowance tax relief for the last few years.
I'm doing their 20/21 returns and her income is showing as £13542 with the mortgage int tax relief of £3260 and so takes her below her PA and so the transfer can be made to her husband.
However, his income is showing as £50490 so into higher rate, this is before the mortgage int tax relief. So if this is taken into account, he would be able to receive the marriage allowance transfer from her. However my software (BTC) is coming up with an error message saying that as his income is so high he cannot receive the transfer.
I've spoken to HMRC and the person seemed to be very clued up on this, she said submit his return and it should correct itself within 30 days and claim the relief. However I wondered whether anyone had done this in practice, the return I will be submitting for him will not have the claim on (in prev years it has shown).
Thanks in advance, I want to make sure I know whether I am getting this right before speaking to the client. Without the transfer he owes £130, with the transfer he gets a refund of £218.