Personal Tax- Claim 'Married Couples Allowance' (born before 1935)

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Personal Tax- Claim 'Married Couples Allowance' (born before 1935)

28th December 2016

IRIS Personal Tax

IRIS Personal Tax- This allowance is for clients born before April 1935. If they are born after this date then you use the 'Marriage Allowance Transfer' steps.

Only use this if one or both clients are born before 6th April 1935. If you want to make a ‘Marriage allowance transfer’ then follow this link: https://www.iris.co.uk/support/knowledgebase/kb/personal-tax-how-to-transfer-marriage-allowance/

1. Log into IRIS Personal Tax, select the client who has been granted the Married Couples Allowance (this is normally the husband)

2. Run their tax computation which will show what unused Married Couples Allowance is allowed to be transferred.

3. If there are no unused Married Couples Allowance then you will not be able to transfer any of the allowance.

4. If there is unused Married Couples Allowance on the computation then you would need to carry out the following steps:-

5. From the Relief’s tab, select Allowances | Married Couple – Allocation and Transfer. 6. Enter in the amount that is showing on the tax computation that can be transferred in the box Amount of surplus transferred.

Surplus Allowance Transferred: Select either from Partner or to Partner from the drop-down list to transfer the surplus allowance to the partner. The surplus allowance would normally be transferred to the wife/lower earning partner but it is possible to transfer the other way if the allowance has been allocated to the wife/lower earning partner but his/her income is too low to utilize it.

Go to Reliefs, Allowances, Married Couples Allocation or Transfer.

• Amount of surplus transferred – enter the amount of the allowance to be transferred to the partner. IRIS does not calculate this amount enter there amount to be transferred e.g. £1990 NOT the tax relief, for example, 10% of £1990 = £199
• Spouse or civil partner has higher income – before 5th December 2005 the allowance is claimed in the first place by the Husband. For new marriages and civil partnerships formed on or after 5th December 2005 the allowance is claimed by the spouse or civil partner who has the higher income. This box is only available for marriage records formed on or after 5th December 2005, otherwise it will be hidden. Ticking this box will move the claim for marriage couples allowance onto the spouse’s Return and tax computations.
• Allocation of Allowance – married couples allowance is given to the Husband/higher earning partner however, the wife/lower earning partner may claim half the minimum allowance or the couple may agree jointly to allocate the total allowance to the Wife/lower earning partner.

Select one of the following options from the drop-down list:

• n/a
• All
• Half
• None

Married Couples allowance still showing after deletion: You have removed the From/To partner and left the MCA boxes empty or left on n/a but the Married Couples allowance of 10% is still showing on the tax comp. Load the other partner, Reliefs, allowances and Married couple. Untick the Spouse or civil partner box option, the allowance will no longer show on the original client tax comp

Getting BOTH Marriage allowance and Married Couples Allowance on a client: You need to delete the claims on both husband and wife (using the DELETE button) and then re-enter the claim on both people. Remember not to fill in the fields relevant to the other Marriage allowance or you will get both.

PT will apply the HMRC maximum allowances based on the tax year (eg for 20121/2022= £9125): https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past. Also under the allowances screen you can adjust the calc using the ‘Amount of Surplus Transfer and allowance allocated to partner boxes’