MILLIONS of UK couples are missing out on tax breaks which could save them up to £1,220.
Here’s how to find out if you and your partner qualify for the marriage allowance.
1
What is the marriage tax allowance?
This tax relief lets married couples plus those in civil partnerships share their personal tax allowances, which can slash hundreds off your yearly tax bill.
You can transfer up to a maximum of £1,260 in unused allowance, which would mean saving £252 off your income tax bill this year.
But you are also allowed to backdate your claim for up to four years as long as you met the criteria.
This would net you an extra £970 in tax savings bringing the total amount you’ve got back up to £1,220.
Are me and my partner eligible?
In a nutshell, one of you in the relationship needs to not earn enough to pay tax, while the other person needs to earn enough to be on the basic 20% tax rate.
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But these are the particular circumstances that must apply to you for you to be able to get the tax break:
- You are married or in a civil partnership
- Either you or your partner needs to be a non-taxpayer, which means you or they earn less than the this tax year’s personal allowance which is £12,570
- The other person in the relationship must earn less than £50,270, which is the upper limit of the basic tax rate of 20%.
- You both have to be born on or after April 6, 1935.
How can I apply?
Only the lower fee payer or non-taxpayer can apply.
The easiest way is to fill out a form on the government’s website.
You’ll need both your National Insurance numbers and a form of ID for the non-taxpayer.
Alternatively, you can apply through self-assessment or by writing to HMRC.
The requirements you must meet include being a married couple or civil partnership – and being born on or after April 6, 1935.
Whichever way you do apply, any backdated money owed to you will be calculated automatically and sent to you as a cheque.
If you need any assistance applying, you can call the HMRC helpline on 03000 200 3300.
Here’s how much the relief is worth for current and past four tax years:
- 2021/22 – £252
- 2020/21 – £250
- 2019/20 – £250
- 2018/19 – £238
- 2017/18 – £230
Brits have been urged to take advantage of all tax breaks available to them as national insurance rates are set to rise.
The cost of living is expected to soar higher when the energy price cap is lifted at the end of March.
Plus, keep up to date with all our money saving tips.
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