Martin Lewis is urging couples to check if they can claim more than £1,000 back from the tax office – but they must act fast to secure the full amount. Sharing one of the tax perks of marriage, the Money Saving Expert founder took to X to prompt people to check their eligibility for marriage tax allowance.
The Marriage allowance enables people to lower their tax bills by transferring a portion of their Personal Allowance to their partner. This reduces their tax by up to £252 in the tax year from April 6 to April 5 the following year. Eligible couples can backdate their claims by up to four years, which means some may be able to claim as much as £1,258 back from HM Revenue and Customs (HMRC). However, those who were eligible from the 2020/21 tax year but didn’t claim have until April 5 to claim the full amount.
Who is eligible for the marriage tax allowance?
To be eligible for tax relief, people must be married or in a civil partnership. Just living together does not count. You must both have been born on or after April 6, 1935.
To benefit as a couple, the lower earner must have an income below the Personal Allowance – usually £12,570. The higher earner must pay income tax at the basic rate, which usually means their income would fall between £12,571 and £50,270.
People can calculate how much tax they could save as a couple by using the Government’s calculator.
It should be noted that when a portion of a person’s personal allowance is transferred to their partner, the individual might have to pay more tax themselves. However, as a couple, they could still pay less overall.
Who should claim the allowance?
If both members of the couple earn only their wages, the person who earns the least should make the claim.
However, if either receives other income, such as dividends or savings, they may need to do more to determine who should claim. If they’re unsure, they can call the Income Tax helpline.
People can apply for the allowance for free online here or by completing a self-assessment tax return.
