Tax break now worth £662 if you submit a new Marriage Allowance claim to HMRC

Avatardeleted139113914
Found 5th Apr 2017
Hey ho it's the new tax year. You can backdate your claim for Marriage Allowance back to when it started 3 years ago (in HMRC terms) - giving you 3 years of this tax break. So it might be worth £662 free money/ tax refund for you. See link for details. All can be done online in 5 minutes.

Marriage Allowance lets you transfer £1,100 of your Personal Allowance to your husband, wife or civil partner.

This can reduce their tax by up to £220 every tax year (6 April to 5 April the next year).

To benefit as a couple, you need to earn less than your partner (who must be a basic rate taxpayer ie less than £43,000 income) and have an income of £11,000 or less.

You can still qualify if your partner earns (say) £50,000 but has pension contributions sufficient to bring them down to under £43,000 income after deductions.

For those wondering if you need to claim this every year, ie you already claimed last year or the year before - the HMRC answer is no you don't, it's automatically applied to future years as long as you both qualify. My answer is: check you get it in subsequent years - as I know a case where this did not happen, fault lying @ HMRC.
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Your partner also needs to be a basic rate taxpayer. You can transfer 10% of your personal tax allowance so it's potentially worth £212 for 2015/16, £220 for 2016/17 and £230 for the new tax year 2017/18. It's amazing how many people who are eligible don't claim!
Edited by: "ptspen" 5th Apr 2017
Just to note if you're only just in the lower rate of tax due to the increase, you won't be able to carry it back. But a great reminder as a lot of people will be pulled out of higher rate, especially if you've got a pension
I think the lower earner also needs to be aware that by giving away 10% of their tax allowance to their spouse if their own earnings are near the £11,000 person allowance threshold then by reducing this they may then become liable to pay tax in their own right. This probably evens out between the couple but best to be aware that this may happen and be prepared for a possible tax demand.
Heat added. This is a tax benefit that is simple to claim online.
Edited by: "Dogeared" 5th Apr 2017
Hmmm... is it worth hitching up with my OH?
Nah - maybe not...
I'd listen to Dogeared. We did this, then my wife got a bill for £220 for unpaid tax from last year, as giving me 10% of her allowance moved her into the liable range! crazy ...... she has never paid tax as she works part-time and minimum wage.
devfish12

I'd listen to Dogeared. We did this, then my wife got a bill for £220 for … I'd listen to Dogeared. We did this, then my wife got a bill for £220 for unpaid tax from last year, as giving me 10% of her allowance moved her into the liable range! crazy ...... she has never paid tax as she works part-time and minimum wage.



If spouses earnings are not 11k i.e. 6k would u say it's a good attempt? Also with back dating I take it they give all in one go?

Edited by: "suley786" 5th Apr 2017
can I claim for 15/16 and 16/17 if I will be married in tjis tax year?
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bahtek86

can I claim for 15/16 and 16/17 if I will be married in tjis tax year?



ptrobably not but worth a try - not sure how well they back test the proof of marriage
suley786

If spouses earnings are not 11k i.e. 6k would u say it's a good attempt? … If spouses earnings are not 11k i.e. 6k would u say it's a good attempt? Also with back dating I take it they give all in one go?


Yes if one spouse's earnings are 6k then provided the other spouse is a basic rate taxpayer (less than £45k for 2017/18 taxpayer) you will be eligible. It's not about attempting to claim, if you and your spouse are eligible then you are entitled to claim and should do so. As others have mentioned if your spouse has earnings using over 90% of their personal allowance then making the transfer will result in additional tax being due from them. Overall it may still be worth claiming if the amount of tax saved by the higher earning spouse exceeds the additional tax due by the other spouse.

Edited by: "ptspen" 6th Apr 2017
For anyone considering it, do not make a false claim as if successful then you may face penalties and interest when HMRC catch up with you!
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ptspen

For anyone considering it, do not make a false claim as if successful … For anyone considering it, do not make a false claim as if successful then you may face penalties and interest when HMRC catch up with you!



morally, what is the difference between a civil partner & the long-term partner you marry after a few years?
It's called marriage allowance! As you have stated it's for married couples or civil partners. Claiming it for previous tax years when you were not married or civil partners is not advisable. HMRC penalties are now determined on their assessment of your actions ranging from innocent errors, careless mistakes to deliberate actions. Claiming in the knowledge that you did not qualify is deliberate in anyone's book and therefore could prove very costly.
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deleted1391139
ptspen

It's called marriage allowance! As you have stated it's for married … It's called marriage allowance! As you have stated it's for married couples or civil partners. Claiming it for previous tax years when you were not married or civil partners is not advisable. HMRC penalties are now determined on their assessment of your actions ranging from innocent errors, careless mistakes to deliberate actions. Claiming in the knowledge that you did not qualify is deliberate in anyone's book and therefore could prove very costly.



ISTR that heterosexual couples cannot register their partner as a civil partner - whereas same sex couples can

where's the fairness in that? to get this tax break, I mean

it might be the law - but when the law is an ass, I say break it
Can anyone advise .... We applied a month ago and our tax codes have been amended - but we haven't received any notification of eligibility or rebate for previous years. Does this happen automatically or do we need to contact them again?
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