Over £1.8 Million couples in marriages or civil partnerships, claimed up to £252 in tax relief thorough "marriage allowance" last year.
Marriage allowance allows married couples or those in civil partnerships to share their personal tax allowances if one partner earns an income under their personal allowance threshold of £12,570 and the other is a basic rate taxpayer.
(So if one partner is a higher rate payer, or if both partners are using all their personal allowance then there won't be a claim).
They can transfer 10% of their tax-free allowance to their partner, which is capped at £1,260 in 2021/22. It means couples can reduce the tax they pay by up to £252 a year. Couples can backdate their claims for any of the four previous tax years, which could be worth up to a total of £1,220.
HMRC encourages taxpayers to sign up for the allowance after they get married if they believe they are eligible.
It is also worth bearing in mind that even if they have been married for years, a change in circumstances could also mean they are newly eligible.
These include:
• a recent marriage or civil partnership; • one partner has retired and the other remains working; • change in employment due to Covid-19; • a reduction in working hours which means their earnings fall below their personal allowance; • unpaid leave or a career break; or • one partner is studying or in education and not earning above their personal allowance.
Note: While Marriage allowance claims should automatically renew each year, we are aware of circumstances when this hasn't been the case so it's always worth checking each year to make sure HMRC has taken into account your allowance.
As ever if you believe you may be able to claim marriage allowance please contact us such that we can advise further.
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