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Where Taxpayers and Advisers Meet

Marriage allowance - HMRC confused

darthblingbling
Posts: 263
Joined: Wed Aug 02, 2017 9:09 pm

Re: Marriage allowance - HMRC confused

Postby darthblingbling » Thu Mar 28, 2019 10:35 am

Just checked s55B. The condition is that the taxpayer is not subject to at a rate other than basic rate..... Savings nil rate....

Savings nil rate amendment came into force 2016/17

See no reason why you shouldn't be entitled to the TTA. Keep up the fight brother

Dave12335
Posts: 23
Joined: Sat Feb 09, 2019 10:09 am

Re: Marriage allowance - HMRC confused

Postby Dave12335 » Thu Mar 28, 2019 10:41 am

Thanks, that’s useful and what I thought too !

Lambs
Posts: 1420
Joined: Wed Aug 06, 2008 3:15 pm

Re: Marriage allowance - HMRC confused

Postby Lambs » Thu Mar 28, 2019 10:48 am

D,

We await the P800 with 'bated breath. At least HMRC is clear on the reason why it believes you to be ineligible. The proof of the pudding will be why the calculation deems that to be the case (or not).

Please do keep us informed, since it could be that (HMRC thinks) you have some income you are not aware of, or HMRC's calculations are systemically incorrect. I am plumping for the latter, in which case it needs to be addressed.

Kind regards,


Lambs

Dave12335
Posts: 23
Joined: Sat Feb 09, 2019 10:09 am

Re: Marriage allowance - HMRC confused

Postby Dave12335 » Thu Mar 28, 2019 11:27 pm

FYI a P800 arrived today but for the previous tax year, with the first paragraph saying “...please wait until you get your tax calculation for the most recent year”.

Still holding my breath then ?! ...

Dave12335
Posts: 23
Joined: Sat Feb 09, 2019 10:09 am

Re: Marriage allowance - HMRC confused

Postby Dave12335 » Fri Mar 29, 2019 9:21 pm

Hi tax friends, the P800 has arrived. The following extracts / points are relevant :

1. HMRC agrees with both the income figures and charitable donations
2. There is no problem with the Personal Savings Allowance
3. The extended basic rate band has been calculated as £44,648. I think this is the basic rate band £33,500 plus donations £5,718 grossed up plus net pension contributions £4,000 NOT grossed up
4. However I had understood the basic rate band should be increased by pension contributions GROSSED UP
5. As a result of 3. the P800 shows some income taxed at the higher rate ( ie the lack of just busts the basic rate limit )
6. The blurb says “The amount you pay at the higher rate has been reduced by the amount of your contributions” - a bit vague on 3. vs 4.

Can anyone clarify whether 3. or 4. is correct ? Ie how do you increase the basic rate band please ? I’d be surprised if the software wasn’t right ?!

darthblingbling
Posts: 263
Joined: Wed Aug 02, 2017 9:09 pm

Re: Marriage allowance - HMRC confused

Postby darthblingbling » Fri Mar 29, 2019 10:31 pm

Is your pension provider definitely giving relief at source?

When you say personal pension, is it you personally paying into a pension or is it a deduction from your wage?

Dave12335
Posts: 23
Joined: Sat Feb 09, 2019 10:09 am

Re: Marriage allowance - HMRC confused

Postby Dave12335 » Fri Mar 29, 2019 10:55 pm

Darthblingbling, it was me paying personally into a pension, not a deduction from my salary. Not sure how to tell the answer to your other query exactly ?

darthblingbling
Posts: 263
Joined: Wed Aug 02, 2017 9:09 pm

Re: Marriage allowance - HMRC confused

Postby darthblingbling » Fri Mar 29, 2019 11:29 pm

I've no idea how HMRC are mucking it up then.

Dave12335
Posts: 23
Joined: Sat Feb 09, 2019 10:09 am

Re: Marriage allowance - HMRC confused

Postby Dave12335 » Fri Mar 29, 2019 11:34 pm

Edit - I just dig out my pension contribution statements and they confirm the contributions are treated as net of income tax. It’s just a bog standard Scottish Widows pension.

It looks like s192 FA04 s3 and s4 may have the answer but I’m not sure.

Dave12335
Posts: 23
Joined: Sat Feb 09, 2019 10:09 am

Re: Marriage allowance - HMRC confused

Postby Dave12335 » Fri Mar 29, 2019 11:37 pm

Our posts crossed but thanks ! It does appear from a web search that relief at source pension contributions are grossed up when extending the basic rate band. Possibly they have misunderstood. Is there a good form of words to explain this?


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