Happy Valentine's Day! : Married Couples Allowance reminder

Married Couples Allowance

Happy Valentine’s Day! HMRC is reminding all married couples and people in civil partnerships that they could receive extra cash this Valentine’s Day as HM Revenue and Customs (HMRC) encourages those eligible to sign up for Marriage Allowance to reduce their tax bill.

More than 2 million couples have applied for the tax relief since it was launched in 2015 but there could be thousands more who are eligible to claim.

What is Marriage Allowance?

It is an allowance that allows married couples or those in civil partnerships to share their personal tax allowances if one partner earns an income under their Personal Allowance threshold of £12,570, and the other is a basic rate taxpayer.

How much is the tax reduction?

Eligible couples can transfer 10% of their tax-free allowance to their partner, which is £1,260 in the 2021 to 2022 tax year. It means couples can reduce the tax they pay by up to £252 a year.

How can I apply?

Couples can apply any time, backdate their claims for any of the 4 previous tax years and receive a payment of up to £1,220 at a time when they need it most.

Marriage Allowance is free to apply for, and customers who claim directly via HMRC’s online portal will receive 100% of the tax relief they are eligible for. Visit GOV.UK to find out how to apply.

If you cannot apply for Marriage Allowance online, you can apply to HMRC in writing or via your Self Assessment tax return.

It is also important to remember that Married couples who have experienced a change in their circumstances may now be eligible to claim, such as:

• a recent marriage or civil partnership
• one partner has retired and the other remains working
• a change in employment due to COVID-19
• a reduction in working hours which means their earnings fall below their Personal Allowance
• unpaid leave or a career break, or
• one partner is studying or in education and not earning above their Personal Allowance

If a spouse or civil partner has died since 5 April 2017, the surviving person can still claim by contacting HMRC 

Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change.

Marriage Allowance amounts

Marriage Allowance is 10% of an individual’s tax-free Personal Allowance. The maximum amount that can be transferred to their husband, wife or civil partner is dependent on the Personal Allowance for that tax year.

Please do not hesitate to contact us our team in Derby should you require any assistance with your tax affairs.