HM Revenue and Customs (HMRC) is urging couples who are married or in a civil partnership to spend “just 30 seconds” to see if they can claim Marriage Allowance.
Marriage Allowance can boost a couple’s finances by up to £252 a year, and many are unaware they could be due it.
By using HMRC’s online Marriage Allowance calculator, couples can find out instantly if they are eligible.
Angela MacDonald, HMRC’s deputy chief executive and second permanent secretary, said: “The Marriage Allowance calculator helps couples to find out in seconds how much they stand to benefit.
“Check today and claim right away. It’s a quick and easy process that’s worth up to £252 a year. Search ‘Marriage Allowance’ on GOV.UK for more information.”
Potential claimants can include those in scenarios where one partner is working and the other has income less than their personal allowance of £12,570.
This can encompass situations where:
- One partner has retired
- One partner has given up work to care for children or elderly relatives
- One partner is unable to work because of long-term health conditions
- One partner has a part-time job
- One partner has a low-paid job.
According to HMRC, applying directly on GOV.UK means couples will receive 100 percent of the tax relief due – this process is also free to carry out.
How does Marriage Allowance work?
Marriage Allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays.
Most people have a personal allowance, normally £12,570, which is the amount of income they do not have to pay tax on. Marriage Allowance lets the lower earner transfer up to £1,260 of their Personal Allowance to their husband, wife or civil partner.
This can reduce their tax by up to £252 annually. If eligible, HMRC says couples can also backdate their claim for the previous four tax years and receive a lump-sum payment worth more than £1,000.
To benefit from the tax relief, one partner must have an income less than £12,570 and the higher earning partner’s income must be between £12,571 and £50,270 (£43,662 in Scotland).
With around 68 percent of people in their sixties married or in civil partnerships, many people in this age group may not realise they can claim the allowance if they have retired and their partner is still working.
UK Men’s Sheds, a charity which brings together retired men to meet at community workshops, is flagging this with their members. Charlie Bethel, the charity’s chief officer, said: “If you have retired and your partner is still working, you may not realise that you could apply for Marriage Allowance.
“As a charity that brings retired men together, we are urging our members throughout the UK to invest the 30 seconds of time it takes to find out if they can claim.”
HMRC has produced a YouTube video to explain who is eligible and how to apply.
