Focus on – Marriage Allowance

Lots of couples aren’t claiming Marriage Allowance, a tax benefit which enables married or civil partners to transfer a proportion of their personal allowance between them.  It’s estimated by HMRC that a million couples who are eligible for this tax benefit aren’t receiving it.

If you are married or in a civil partnership and one of you is earning less than £11,850 a year and the other is a basic rate taxpayer earning less than £46,350 and you were both born on or after April 6^th 1935, you are eligible to claim Marriage Allowance.  You can also claim the allowance back to April 6^th 2015 when the change to the law was introduced.

For example –
A couple with a low earning partner transferring their allowance to their basic rate tax partner could claim

£212 from the tax year starting April 6^th 2015,

£220 from the tax year starting April 6^th 2016,

£230 from the tax year starting April 6^th 2017

£238 from the tax year starting April 6^th 2018

Equalling a total tax refund of £900.

It’s easy to apply for Marriage Allowance on line, although the application needs to be made by the lower or non-wage earner.  It will then be paid via a tax refund to the higher wage earner. Once you have made a claim you don’t need to reapply each year.

If your partner has died since April 6^th 2015 you are still eligible to claim and if you were born before April 6^th 1935 you may be eligible to claim Married Couples Allowance.

To find out more visit – www.gov.uk/marriage-allowance