Thousands of married couples missing out on £1,200 – how to claim NOW
THOUSANDS of married couples could be missing out on a tax break of up to £1,200.
Her Majesty’s Revenue and Customs (HMRC) are urging people to make sure they are making the most of the marriage tax allowance.
The relief allows married couples or people in civil partnerships to share their personal tax allowances.
People can transfer 10% of their tax-free allowance to their partner, reducing the tax they pay by up to £252 a year.
They can apply at any time and, in some cases, could backdate their claims for up to four previous tax years.
This means you could potentially receive tax relief worth up to £1,242.
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Unfortunately, not everybody is eligible.
The lower earner in a couple must normally have an income below their personal tax-free allowance - which is currently £12,570.
And the other half of the couple must be a basic-rate taxpayer - so earning under £50,000.
But couples who have been married for years can still qualify.
You can benefit from the Marriage Allowance if all of the following apply:
- You’re married or in a civil partnership
- You do not pay Income Tax or your income is below your Personal Allowance (usually £12,570)
- Your partner pays Income Tax at the , which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance
You cannot claim Marriage Allowance if you’re living together but you’re not married or in a civil partnership.
The person who earns the least should make the claim.
If either of you gets other income, such as dividends or savings, you will need to factor this in.
Before you apply make sure you and your partner have your to hand.
You’ll also need a way to prove your identity - such as with your passport details.
Once you’ve applied and been accepted, HMRC will give the higher earner in the couple the allowance the lower earner has transferred to them.
Or this can be done when the higher earner sends their Self Assessment tax return.
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Meanwhile a quick check that takes only two minutes could tell you if your owed tax back.
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