Google Adwords 0808 278 1398 Bing Ads 0808 274 4482

Would you benefit from the Marriage Tax Allowance?

You could be one of a million people currently able to claim the Marriage Tax Allowance who have not yet applied.
The Government introduced the Marriage Tax Allowance in April 2015. This is a way to transfer some of your personal tax allowance to your spouse, saving you money on income tax.

According to recent studies, 4.2 million Britons are eligible for this scheme, yet there are roughly 1 million people who have still not applied.

Granted, it is not a life changing amount of money (roughly £230 for this tax year), but every little bit helps. It is worth noting, though, that the payments can be backdated from 2015, so you could potentially get a rebate of £900.

How does it work?

If you are working, but are earning under the limit to be taxed (£11,850 at the time of publishing), then you have the ability to transfer a portion of your allowance to your spouse. This raises their allowance to £13,040 before they start having to pay Income Tax. Given that Income Tax is currently 20%, that would be a saving of £238.

It must be noted that you would not be eligible if one of you is earning over the amount at which you pay Basic Rate Tax (£46,350 at the time of publishing).

If your partner has sadly passed on since April 2015, you may still be able to claim. You can find out by speaking to the Income Tax Helpline on 0300 200 3300.

If you think you are eligible for the Marriage Tax Allowance, then you can apply online at https://www.gov.uk/apply-marriage-allowance

Are there any age limits on claiming?

If you or your partner were born before 6 April 1935, then you may be able to claim Married Couples Allowance instead. The parameters of this are slightly different, but you can check your eligibility online using the calculator: https://www.gov.uk/calculate-married-couples-allowance.

You may also be able to claim if you are not living with your partner for a few reasons:

  • Ill health;
  • Working away from home;
  • If one of you is in the armed forces; or
  • if one of you is currently in prison

If you want to talk your situation through with someone to see if you are eligible, then you can contact HMRC on 0300 200 3300.

Expert legal advice you can rely on,
get in touch today:

Please let us know you are not a robot