Self assessment not taking into account marriage allowance
Discussion
My wife transferred the 10% of her personal allowance when it first came out and certainly last year it showed on my SA tax calculation.
This year it does not appear at all on the calculation and is saying I owe far more tax than I do.
There is no box for me to say that my wife has transferred the 10% over.
Is this a glitch on the SA site?
Is it the case my wife should complete her SA first then the Marriage Allowance transfer will show in my calculation?
Or do I just have to pay it and it’s refunded sometime in the future?
Can’t find any explanations on HMRC guides, guess I’m missing something simple here!
This year it does not appear at all on the calculation and is saying I owe far more tax than I do.
There is no box for me to say that my wife has transferred the 10% over.
Is this a glitch on the SA site?
Is it the case my wife should complete her SA first then the Marriage Allowance transfer will show in my calculation?
Or do I just have to pay it and it’s refunded sometime in the future?
Can’t find any explanations on HMRC guides, guess I’m missing something simple here!
I think it is something handled outside Self Assessment.
As ever, when the Government introduced this, they probably forgot about how it would impact Self Assessment tax returns and calculations.
Or perhaps what happened is that their HMRC advisors told them, "Since we are abolishing Self Assessment on 5 April 2018, it's not worth messing with the Self Assessment system to accommodate this fairly pathetic allowance".
Of course, the plan to close down Self Assessment on 5 April 2018 was postponed so now we are a left with a silly situation.
As ever, when the Government introduced this, they probably forgot about how it would impact Self Assessment tax returns and calculations.
Or perhaps what happened is that their HMRC advisors told them, "Since we are abolishing Self Assessment on 5 April 2018, it's not worth messing with the Self Assessment system to accommodate this fairly pathetic allowance".
Of course, the plan to close down Self Assessment on 5 April 2018 was postponed so now we are a left with a silly situation.
In past years the online SA automatically included the marriage allowance in the tax return calculations but was absent when I submitted the 18/19 return today.
I called HMRC help line who insisted I hadn't ticked an appropriate box in the submission and wouldn't accept that there wasn't a box available.
HMRC said I have to submit an erroneous return and then contact them after 72 hours to correct their problem. Not pleased with their response at all.
I called HMRC help line who insisted I hadn't ticked an appropriate box in the submission and wouldn't accept that there wasn't a box available.
HMRC said I have to submit an erroneous return and then contact them after 72 hours to correct their problem. Not pleased with their response at all.
There are TWO separate types of tax relief claims that relate to being married - which are completely different in what they aim to achieve.
Once upon a time there used to be a general extra personal allowance available to "Married Men". It was called, not surprisingly, the "Married Man's Allowance". It went through a number of name changes over the years but still survives as the Married Personal Allowance. But is only available if one of the individuals in a marriage is aged over 75.
In more recent times, a new allowance was introduced which allows the transfer of unused allowances from one spouse/partner to the other.
You need to be sure you are making the right claim for the right allowance.
Once upon a time there used to be a general extra personal allowance available to "Married Men". It was called, not surprisingly, the "Married Man's Allowance". It went through a number of name changes over the years but still survives as the Married Personal Allowance. But is only available if one of the individuals in a marriage is aged over 75.
In more recent times, a new allowance was introduced which allows the transfer of unused allowances from one spouse/partner to the other.
You need to be sure you are making the right claim for the right allowance.
Cheers all, it got worse when we attempted to complete my wife’s SA and the transfer of personal allowance part. Basically it kept reporting that the details entered were not what HMRC had on record and wouldn’t go any further.
A call to contact centre resulted in a support worker being unable to explain it, admitting that all of the correct details were being used and no idea what was happening.
The advice was to forget the claim for personal allowance transfer and submit both my wife’s SA and mine and contact them after 72 hours to have it put right. I would also have to pay additional tax for the missing transfer of personal allowance which I would then have to claim back.
So lots of extra time for me and the wife, and rework for HMRC.
A call to contact centre resulted in a support worker being unable to explain it, admitting that all of the correct details were being used and no idea what was happening.
The advice was to forget the claim for personal allowance transfer and submit both my wife’s SA and mine and contact them after 72 hours to have it put right. I would also have to pay additional tax for the missing transfer of personal allowance which I would then have to claim back.
So lots of extra time for me and the wife, and rework for HMRC.
steveatesh said:
Cheers all, it got worse when we attempted to complete my wife’s SA and the transfer of personal allowance part. Basically it kept reporting that the details entered were not what HMRC had on record and wouldn’t go any further.
A call to contact centre resulted in a support worker being unable to explain it, admitting that all of the correct details were being used and no idea what was happening.
The advice was to forget the claim for personal allowance transfer and submit both my wife’s SA and mine and contact them after 72 hours to have it put right. I would also have to pay additional tax for the missing transfer of personal allowance which I would then have to claim back.
So lots of extra time for me and the wife, and rework for HMRC.
That's the advice I gave to one of my clients. His wife wasn't using her allowances in full so wanted to transfer the unused allowances to the husband. I just could not see how it could be done using the tax software I have. So, the two returns went in without the claim and the client phoned HMRC and instructed them by phone. It worked.A call to contact centre resulted in a support worker being unable to explain it, admitting that all of the correct details were being used and no idea what was happening.
The advice was to forget the claim for personal allowance transfer and submit both my wife’s SA and mine and contact them after 72 hours to have it put right. I would also have to pay additional tax for the missing transfer of personal allowance which I would then have to claim back.
So lots of extra time for me and the wife, and rework for HMRC.
Gassing Station | Finance | Top of Page | What's New | My Stuff