Martin Lewis has issued an urgent warning to married couples.
The consumer champion has become a vital voice in the cost-of-living crisis as he shares valuable tips on shows such as Good Morning Britain, This Morning and Money Show Live. The Money Saving Expert revealed last week that if you're married or in a civil partnership, you may be entitled to a £1,260 tax break.
This is called the marriage tax allowance and it is estimated that 2.1 million couples miss out on this each year. Martin urged people to act quickly as those who are eligible must apply before the new financial year starts tomorrow.
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He said: "Are you married or in a civil partnership? If so:
- Is one of you a basic 20% taxpayer?
- The other a non-taxpayer (earn under c£12,570/yr)
"If so you're likely due up to £1,300 tax back but if you don't sort by Wed 5 April you risk losing £100s." Martin issued an update on this warning yesterday on Twitter as he urged people to act.
He said: "If this is relevant to you - DO IT TODAY - do not delay."
A guide on the 50-year-old's MSE website outlined everything to know about the marriage tax allowance, including how to apply, how much you could get and who is eligible.
Who is eligible for marriage tax allowance?
- You need to be married or in a civil partnership. Just living together doesn't count.
- One of you needs to be a non-taxpayer. This usually means you'll earn less than the £12,570 personal allowance between April 6, 2022 and April 5, 2023.
- The other partner needs to be a basic 20% rate taxpayer. This means you'd normally need to earn less than £50,270, or if you live in Scotland, £43,662. Higher or additional-rate taxpayers aren't eligible for this allowance.
- You both must have been born on or after 6 April 1935.
How much can you get?
Marriage tax allowance for the 2022/23 tax year is worth up to £252.
In addition to the current year's allowance, you can backdate your claim by up to four tax years too – currently 2018/19, 2019/20, 2020/21 and 2021/22. But the deadline to apply for 2018/19 is April 5, 2023.
The amounts for each year are worth up to:
- 2022/23 – £252
- 2021/22 – £252
- 2020/21 – £250
- 2019/20 – £250
- 2018/19 – £238
This means that if you claim for this tax year and backdate the maximum four years, you'll get up to £1,242.
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