HM Revenue and Customs online marriage allowance calculator informs couples of the amount that they could reduce their annual income tax bill by…
Are you in a couple – married or in a civil partnership?
Did you know that if you are in a situation where one partner (either husband, wife or civil partner) is working and the other has less income than their personal allowance of £12,570, then they may be eligible for marriage allowance.
Marriage allowance lets individuals transfer 10% of their tax-free personal allowance (the maximum amount that can be transferred to their partner is dependent on the personal allowance for that tax year). The allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays. It lets the lower earner transfer £1,260 of their personal allowance to their husband, wife or civil partner. This can reduce their tax by up to £252 annually.
Couples in this situation may include those where one partner has:
- retired
- given up work to care for children or elderly relatives
- been unable to work because of long term health conditions
- a part time job
- a low paid job
If eligible, couples can also backdate their claim for the previous four tax years and receive a lump-sum payment worth more than £1,000.
To benefit from the tax relief, one partner must have income less than £12,570 and the higher earning partner’s income must be between £12,571 and £50,270 (£43,662 in Scotland). HMRC has produced a YouTube video to explain who is eligible and how to apply.
HMRC has reported that with around 68% of people in their sixties married or in civil partnerships, many people in this age group may not realise they can claim marriage allowance if they have retired and their partner is still working.
