One of the factors which creates problems for capturing online tax returns is when the return includes a claim for receipt of the marriage allowance, see our newsletter on 20 September 2018. This problem is highlighted in exclusion number 105 on the SA online exclusions list for 2018/19.
The temptation would be not to claim the marriage allowance, but this would mean the taxpayer would pay £238 more in tax than was strictly due for 2018/19. If the marriage allowance is available for all years from 2015/16 (when it was introduced), the taxpayer could have overpaid tax of £900 across those four years.
The deadline for claiming the marriage allowance for 2015/16 is 5 April 2020. It would be worthwhile checking that all our married clients, and those in civil partnerships have claimed the marriage allowance where both partners are eligible. If the higher earner is taxed above the basic rate, they can’t receive the marriage allowance from their partner.
Remember a widow or widower can still claim the marriage allowance for years in which their partner was living for 2015/16 onwards.
Written by the Tax Advice Network