Martin Lewis reveals how to claim marriage tax allowance
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HMRC has urged couples who got married during the lockdown to claim marriage allowance. This is a state perk which allows applicants to reduce their tax bills.
HMRC detailed: “Got married during lockdown?
“Whether you had 25 guests, 10 guests or no guests at all, you could still be eligible for Marriage Allowance.
“Check your eligibility and submit a claim. It is quick and easy and will only take a few minutes.”
Marriage Allowance lets applicants transfer £1,260 of their income tax Personal Allowance to their husband, wife or civil partner.
This, the Government details, reduces their tax costs by up to £252 during the tax year.
To benefit as a couple, the claimant (as the lower earner) must normally have an income below the Personal Allowance, which is usually £12,570.
When transferring part of a Personal Allowance to a husband, wife or civil partner a person may have to pay more tax themselves, but the overall costs for the couple should be less as a result.
Marriage Allowance claims can also be backdated to include any tax year since 2017, so long as claimants are eligible.
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A claim for Marriage Allowance can be made so long as all of the following apply:
- The claimant is married or in a civil partnership
- They do not pay income tax or their income is below their Personal Allowance
- Their partner pays income tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance
Marriage Allowance can be applied for through the Government’s website, through a Self Assessment or by writing to HMRC.
Applications are free to make and applicants will need to have both their and their partner’s National Insurance numbers at the ready.
Additionally, claimants will need to prove their identity with at least two forms of ID which can include a P60, UK passport details or a most recent payslip.
The lowest earner within the couple should make the claim but if either gets income from sources such as dividends or savings, they may need to work out carefully who should claim.
Following a successful claim, HMRC will give the claimant’s partner the allowance they have transferred to them, and this is done either:
- By changing their tax code – this can take up to two months to process
- When they send in their Self Assessment tax return
Both the claimant and their partner will get new tax codes to reflect the transferred allowance.
A person’s tax code will end with “M” if they are receiving the allowance, or “N” if they are transferring an allowance.
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