Couples warned they could be missing HMRC tax break worth more than £1 | Personal Finance | Finance
Couples could be making a saving (Image: Getty)
UK couples could be missing out on an HMRC tax break worth more than £1,000 if they have not checked whether they can claim Marriage Allowance. The allowance lets a lower-earning husband, wife or civil partner transfer £1,260 of their Personal Allowance to their partner, cutting the couple’s tax bill by up to £252 for a tax year.
Claims can currently be backdated to April 6, 2022, meaning eligible couples who missed the relief for four previous tax years could be due up to £1,008 before any current-year savings are considered.
A married couples’ tax bill by up to £252 for a tax year (Image: Getty)
The Marriage Allowance is aimed at married couples and civil partners in which one person does not pay Income Tax or earns less than the Personal Allowance, which is usually £12,570.
The other partner must normally pay Income Tax at the basic rate. That usually means income between £12,571 and £50,270 before the Marriage Allowance is applied.
There is a separate Scotland caveat. In Scotland, the partner receiving the allowance must pay the starter, basic or intermediate rate, which usually means income between £12,571 and £43,662.
Couples cannot claim the allowance if they are simply living together. They must be married or in a civil partnership, and eligibility must be met for each year being claimed.
The four tax years currently listed for backdated claims each carry a maximum saving of £252:
That makes the maximum backdated refund £1,008, before any savings for the current tax year are considered.
Marriage Allowance is aimed at couples where one person does not pay Income Tax (Image: Getty)
Important eligibility warning
Older couples should check carefully before claiming. If either partner was born before April 6, 1935, they may be better off checking Married Couple’s Allowance instead, as the two allowances cannot be claimed at the same time.
The claim is made by the person giving up part of their Personal Allowance. Online claims can be made through GOV.UK, while postal claims must use the HMRC form MATCF.
For earlier years, the partner receiving the Marriage Allowance may get a refund from HMRC. For the current year and future years, tax codes are usually changed so the allowance continues automatically until it is cancelled.
A spokesperson for vettory.org, a financial assistance information platform, said: “This is exactly the sort of allowance that can be missed because nothing dramatic happens when you become eligible. A partner may reduce their hours, retire, take time out for caring, or have a lower-income year, and the couple never think to revisit their tax position.
“The key point is that people do not need to pay a refund company just to check this. Use the official GOV.UK Marriage Allowance service first, make sure you meet the rules for every year you are claiming, and set a yearly reminder to review any tax breaks or benefit entitlements that may have changed with your income. ”
