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What is the marriage allowance and how can I claim the tax break?
THOUSANDS of couples could be in line for tax relief worth up to £252 a year.
The boost comes via the marriage allowance which lets you share your income tax burden with a partner.
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But there are specific rules which apply and not everyone can claim the allowance.
Here's everything you need to know.
What is the marriage tax allowance?
Marriage allowance lets married couples or those in a civil partnership share their personal tax allowances.
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The current personal allowance is £12,570, meaning you can earn this amount a year and not pay any income tax.
You can transfer 10% of your personal allowance, reducing the tax your partner pays by up to £252 a year.
You can also backdate a claim by up to four years, so could get a maximum of £1,256 back, although not all the qualifying years offer the same amount.
Are me and my partner eligible?
One of you needs to be earning little enough to not be paying a personal allowance, while the other has to be on the "basic rate" of income tax.
The basic rate applies to anyone earning £12,571 to £50,270 a year and is worth 20%.
Both people in the couple have to have been born on or after April 6, 1935, as well.
Plus, you must be married or in a civil partnership.
As an example, if your income is £11,500 your personal allowance is £12,570 so you don't pay any tax.
If your partner's income is £20,000 they pay tax on £7,430 which is £20,000 minus the personal allowance.
But you could transfer your personal allowance to your partner meaning they would only pay tax on £6,170 and you would effectively be earning £12,760 and have to pay income tax on £190.
It means as a couple you would pay less combined income tax and would save £214 overall.
It comes after HMRC revealed that March is the most popular month for marriage allowance applications, with nearly 70,000 applying in the month last year.
How can I apply?
The lower fee payer or non-taxpayer has to apply.
The easiest way is to fill out a form on the .
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 .
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.
Who is eligible for marriage allowance?
You can claim marriage allowance if any of the following apply
- You are married or in a civil partnership
- You do not currently pay income tax or your income is below your personal allowance (usually £12,670)
- Your partner pays income tax at the basic rate, which usually means their income is between £12, 571 and £50, 270 before they receive marriage allowance.
It is also worth noting that you cannot claim marriage allowance if you are living together and not married or in a civil partnership.
Claims for marriage allowance can be backdated to include any tax year since April 5, 2018 that you were eligible.
Your partner’s tax bill will be reduced depending on the personal allowance rate for the years you’re backdating.
You can apply for marriage allowance by filling out a form on the government website.
You can also apply through self-assessment or by writing to HMRC.
The relief for the current financial year (2023/24) is £252 while it's the same for 2022/23 and 2021/22.
For 2020/21 and 2019/20 the maximum backdated amount you can get is £250.
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