It might not be the most romantic conversation to have on Valentine's Day, but unless you do, married and civil partnership couples across the UK could be missing out on £252 a year. HM Revenue and Customs (HMRC) warns that thousands of couples are missing out because they don’t realise they may be eligible.
With the cost of living crisis forcing most households to tighten their belts, ensuring that you are claiming or saving every penny possible is becoming ever more important. While discussing finances on the most romantic day of the year may not be top of your list, married and civil partnership couples are being urged to take the topic seriously and, as HMRC puts it, consider giving the gift of Marriage Allowance to their husband, wife or civil partner. It could save up to £252 a year.
More than 2.1 million couples currently benefit from Marriage Allowance, but HMRC estimates thousands more are missing out because they don’t realise they may be eligible, particularly couples where one partner has retired, has given up work to take on caring responsibilities, or is unable to work due to a long-term health condition.
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So just what does transferring your allowance mean. Well, those Brits earning less than £12,570 a year can transfer up to £1,260 of their Personal Allowance to their higher-earning partner, this will reduce the amount of tax they pay. They can backdate their claim to include any tax year up to 6 April 2018, which could be worth up to £1,242 in tax relief.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We want every eligible couple to benefit from marriage allowance tax relief. Couples whose circumstances have changed – perhaps one of them has stopped working or taken a lower paid job – may not realise they are entitled to claim."
Who can apply to transfer their Marriage Allowance
Couples could benefit from Marriage Allowance if the following criteria applies:
- they are married or in a civil partnership
- they do not pay income tax, or their income is below the Personal Allowance of £12,570
- their partner pays income tax at the basic rate – which typically means their income is between £12,571 and £50,270
How to check if you are eligible to transfer your Marriage Allowance
Angela MacDonald commented: “It’s easy to find out what you may be due - search ‘Marriage Allowance calculator’ on GOV.UK to get started. By applying on GOV.UK, rather than through a third party, you get to keep 100% of the tax relief due.”
Couples can use the free Marriage Allowance calculator on GOV.UK to check if they are eligible for the tax relief.
How to apply to transfer Marriage Allowance
Those who are eligible can apply at GOV.UK for free and keep 100% of their claim. Successful claims will result in a reduction in the amount of tax paid by the higher-earning partner. Married Allowance can be cancelled on GOV.UK if a couple’s circumstances change.
To find out what other Government support may be available, go to GOV.UK and search ‘Help for Households.’
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