Martin Lewis has said that 2.1 million couples could get more than £1,000 paid into their bank accounts within a week if they take urgent action. The money saving guru took to Twitter with an important message - and people only have until April 5 to take action.
He said that the issue was around tax back payments with up to £1,300 up for grabs. Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner.
This reduces their tax by up to £252 in the tax year (6 April to 5 April the next year). Mr Lewis said: “URGENT [please] share. Are [you] married or in civil partnership if so - Is one of [you] a basic 20 per cent taxpayer? [Or] 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.”
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He then added: “Folks there are 2.1m UK couples eligible for this & MISSING OUT. It’s likely most will get £1,000+ paid straight into their bank accounts possibly within a week. Please retweet the tweet below, make it massive, as if it’s not done ASAP people will miss over £200 of the payout.”
The MoneySavingExpert founder says from April 6 couples will “lose the ability to do claims relating to the 2018/19 tax year... so get your skates on”. Marriage Allowance lets those earning less than £12,570 a year to transfer up to £1,260 of their Personal Allowance to their higher-earning partner, to reduce the amount of tax they pay.
To be eligible for the tax break you must be married or in a civil partnership. And one of you must be a non-income-taxpayer, the other a basic 20 percent taxpayer.
The financial guru explained: “The non-taxpayer can apply to transfer 10 percent of their tax-free allowance, currently £1,260, to their spouse, so they now can earn that much more without paying 20 per cent tax, so they pay £250 less tax.” Once you’re signed up, it’s paid automatically year after year.
Who can apply
You can benefit from Marriage Allowance if all the following apply:
- 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, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance
You can apply for Marriage Allowance through the official Government gateway, here. Claimants will need to sign in using your Government Gateway user ID and password, or register if you haven't already got one.
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