HMRC has confirmed that almost 1.8m couples across the UK have benefitted from the marriage allowance and are saving up to £252 a year. The marriage allowance is available to qualifying married couples and those in a civil partnership where a spouse or civil partner is a non-taxpayer i.e. has an income below their personal allowance (currently £12,570).
The marriage allowance allows the lower-earning partner to transfer up to £1,260 of their personal tax-free allowance to their spouse or civil partner. The allowance can only be used when the recipient of the transfer (the higher-earning partner) doesn’t pay more than the basic 20% rate of Income Tax. This would usually mean that their income is between £12,570 to £50,270 in 2021-22. The limits are slightly different if you live in Scotland.
If you are entitled to the marriage allowance and have not yet applied you could receive a payment of up to £1,220 from HMRC. HMRC is using the summer wedding season to remind couples to make a claim. It is estimated that whilst almost 1.8m couples have already claimed the Marriage Allowance, there are still in the region of 2 million eligible couples that have not made a claim.
If you meet the eligibility requirements and have not yet claimed the allowance you can backdate your claim to 6 April 2017. This could result in a total tax break of up to £1,220 for 2017-18, 2018-19, 2019-20, 2020-21, and the current 2021-22 tax year.
To discuss your personal tax position, call MJB Avanti 08000 388799
Source: Informanagement