HMRC marriage allowance

HM Revenue and Customs (HMRC) recently gave a press release encouraging married couples and those in a civil partnership to sign up for the Marriage Allowance.

More than 3.5 million couples are already benefitting from the Marriage Allowance, which was introduced in April 2015, but HMRC estimates around 700,000 couples are still eligible for the free tax break worth up to £238 this year. If their claim is backdated, they could receive a lump sum of up to £900.

For those of you that are not aware of how this works, the Marriage Allowance lets you transfer £1,190 (£1,250 in 2019/20) of your Personal Allowance to your husband, wife or civil partner – if they earn more than you, which can reduce their tax by up to £238 in 2018/19 (and £250 in 2019/20).

To benefit as a couple, you (as the lower earner) must normally have an income below your Personal Allowance – which is currently £11,850 (£12,500 for 2019/20).

You can backdate your claim to include any tax year since 5 April 2015 that you were eligible for the Marriage Allowance.

You can therefore benefit from the Marriage Allowance if all the following apply:

  • you’re married or in a civil partnership
  • you do not pay income tax or your income is below your Personal Allowance (currently £11,850 increasing to £12,500 for 2019/20)
  • your partner pays income tax at the basic rate which currently means their income is between £11,851 and £46,350

Worth a check at the very least!



Talk to Barnes Roffe today
Share this page:
Contact Us
ICAEW The Chartered Institute of Taxation ACCA IPG IR