The Marriage Allowance is a government scheme that could save eligible couples up to £1,260 in tax. It applies to married couples and civil partners, providing a financial boost to households where one partner has a lower income. Let’s explore what the Marriage Allowance is, who qualifies, and how you can claim it.
What Is the Marriage Allowance?
The Marriage Allowance allows one partner to transfer up to 10% of their personal tax allowance to the other, reducing the higher earner's tax bill. The standard personal allowance for the 2023/24 tax year is £12,570, meaning you could transfer £1,260 to your partner.
This can result in a tax saving of up to £252 each year. Better yet, claims can be backdated for up to four previous tax years, potentially adding up to over £1,000 in savings.
Who Is Eligible for Marriage Allowance?
To qualify for the Marriage Allowance, you must meet the following criteria:
Married or in a Civil Partnership
You must be legally married or in a civil partnership. Couples living together without formal recognition are not eligible.Income Requirements
One partner must be a non-taxpayer (earning less than the personal allowance of £12,570 for the current tax year).
The other partner must be a basic-rate taxpayer (earning between £12,571 and £50,270 in England, Wales, and Northern Ireland, or £43,662 in Scotland).
Both Partners Must Be Born After 6 April 1935
If one partner was born before this date, the Married Couple’s Allowance might apply instead.
How to Claim Marriage Allowance
Claiming the Marriage Allowance is straightforward and can be done online via the HMRC website. Here’s how:
Check Your Eligibility
Use the online Marriage Allowance calculator on the HMRC website to see how much you could save.Apply Online
The lower-earning partner must apply for the allowance. You’ll need both partners’ National Insurance numbers and proof of identity.Wait for Confirmation
Once approved, HMRC will adjust your tax codes. The higher earner will see the savings reflected in their take-home pay or tax return.Backdate Your Claim
If eligible, you can backdate claims for up to four years, provided you met the criteria during that time.
Common Questions About Marriage Allowance
Q: What if my circumstances change?
If your income increases, you separate, or your partner becomes a higher-rate taxpayer, you must notify HMRC to update your allowance status.
Q: Can I still claim Marriage Allowance if my partner has passed away?
Yes, you can claim Marriage Allowance for up to four years after your partner’s death, as long as you were eligible during that period.
Q: How long does it take to process a claim?
Claims typically take a few weeks to process. For backdated claims, it may take longer to receive a refund.
Final Thoughts
The Marriage Allowance is a simple way for eligible couples to save on their taxes. If you think you might qualify, it’s worth taking a few minutes to apply and potentially reclaim valuable savings.
Don’t leave money on the table—check your eligibility today and take advantage of this often-overlooked benefit!
Have questions about the Marriage Allowance or need help applying? Contact us and will be happy to assist.