You are here: Home - Saving & Banking - News -

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

Written by:
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.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week