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Couples can save £252 a year: check if you’re eligible

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10/08/2021
Couples are missing out on a tax break worth up to £252 a year by failing to claim marriage allowance.

Figures from HM Revenue and Customs (HMRC) show around 1.8 million married couples and those in civil partnerships are making use of the benefit but many more could be eligible.

The marriage allowance lets you transfer part of your personal allowance, which is currently set at £12,570, to your partner if they earn more than you.

The personal allowance is the amount of income you don’t have to pay tax on so by transferring some of your allowance to your partner, they are able to earn more income tax-free.

You can currently transfer £1,260 of your personal allowance to your husband, wife or civil partner reducing the amount of 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.

If you’ve recently taken unpaid leave, changed employment due to Covid 19, or reduced your hours, you could now be eligible to claim the allowance.

You may also be entitled to it if you or your partner recently retired.

It is free to apply for the marriage allowance and you can check eligibility and make a claim here.

Marriage allowance claims are automatically renewed every year but you need to notify HMRC if your circumstances change.

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