Thanks very much for any help that can kindly be given.
I believe all the conditions for marriage allowance are met in my case, see the letter that I wrote to hmrc below.
Hmrc wrote back to me with a broad brush letter to say “the allowance cannot be transferred to a spouse whose earnings before any adjustments are liable to tax at the higher rate”. It seems, they do not believe adjustments are made for gift aid and pension contributions.
I am not sure what to do. Would writing a letter pushing back help ?
Letter written to hmrc :
“Following difficulty on the telephone with HMRC, I am writing to ask the tax reduction for marriage allowance be applied to my account for 2017/18.
I can confirm that I meet the conditions set out at s55B Income Tax Act (ITA) 2007 and that my spouse meets the conditions set out as s55C ITA 2007.
In particular, the main income condition which applies to me as the transferee is that I am not, for 2017/18, liable to tax at a rate other than the basic rate. Kindly note, that I have an extended basic rate band of £45,647 as a result of gift aid payments of £5,718 (net) and pension contributions of £4,000 (net). It is this extended basic rate band of £45,647 that is used to determine whether I am a basic rate taxpayer and thus whether marriage allowance may be claimed. My taxable net income was £45,550 (comprising employment income of £56,559 + taxable benefits of £491 - personal allowance of £11,500). As such, I am a basic rate taxpayer and therefore entitled to marriage allowance.
On the telephone, I received inaccurate guidance from HMRC that I was not entitled to the marriage allowance.
I look forward to receiving confirmation as soon as possible that the tax reduction has been applied to my account for 2017/18.“