As the cost of living crisis continues to place financial pressure on Brits across the country, many will be looking for all sorts of tips and tricks to help save some cash.
Fortunately, married couples could have their taxes reduced via Marriage Allowance. However, understanding how much Marriage Allowance you could receive can be a complicated process.
Marriage Allowance allows you to transfer up to £1,260 of your Personal Allowance to your husband, wife or civil partner and can reduce their payments by up to £252 in the tax year. The standard Personal Allowance is £12,570 - the amount of income you do not have to pay tax on, according to the government.
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However, if you claim Marriage Allowance then your Personal Allowance may be even bigger.
Who is eligible for Marriage Allowance?
In order to begin claiming Marriage Allowance and benefit as a couple, the lower earner must normally have an income below Personal Allowance which is typically around £12,570. According to the government, you or your partner can benefit from Marriage Allowance if you meet all of the following criteria:
- You're married or in a civil partnership
- You do not pay Income Tax or your income is below your Personal Allowance (usually £12,570)
- Your partner pays Income Tax at the basic rate - usually their income is between £12,571 and £50,270 - before they receive Marriage Allowance.
Unfortunately, you cannot claim Marriage Allowance if you and your partner live together but you're not married or in a civil partnership.
How to apply for Marriage Allowance
If both you and your partner have no income other than your wages, then the person who earns the least amount of money should make the claim. If your application is successful then your Personal Allowance will be backdated to the start of the tax year.
Applying online
The easiest and most convenient way to apply for Marriage Allowance is through the government's online form. You will be asked to provide some basic information such as your and your partner's income.
Other ways to apply
If you are unable to apply online then you can either do it through Self Assessment if you're registered and send tax returns or you can write directly to HMRC.
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