Marriage Allowance enables one partner in a married couple or civil partnership to transfer part of their tax-free allowance to the other partner.
HMRC is having a drive to encourage people to claim the allowance as Government statistics show that of around 4 million couples who would benefit, one million have yet to claim.
The marriage allowance for 18/19 is £1,190, generating a maximum tax saving of £238. People making a claim now, for 18/19, and making backdated claims for 15/16, 16/17 and 17/18 could generate a tax refund of £660.
Marriage allowance can be claimed online at: https://www.gov.uk/apply-marriage-allowance
Points to note:
- To benefit as a couple, you need to earn less than your partner and have an income of £11,850 or less. You partner’s income must be between £11,851 and £46,350.
- If the claim is made the full amount is transferred – you cannot choose to transfer part of it.
- The claim is made by the transferor.
- Where the partners are within PAYE the transfer is usually occurs by adjusting the partners’ tax codes. If the recipient partner is self employed, the relief will be given via self-assessment.
If you need further guidance on this affects you, please get in touch.
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