Are you missing out on £900?
Around 2,000,000 couples aren’t claiming.
The income tax Marriage Allowance was first introduced in April 2015. Around half of the 4,000,000 eligible couples aren’t benefiting and could claim around £900. Are you one of them?
Can I apply for Marriage Allowance?
Yes you can, if …
If you’re in Scotland, your partner must pay the starter, basic or intermediate rate, which usually means their income is between £11,850 and £43,430.
It won’t affect your application for Marriage Allowance if you or your partner –
If you or your partner were born before 6 April 1935, you might benefit more as a couple by applying for Married Couple’s Allowance instead.
You can’t receive Marriage Allowance and Married Couple’s Allowance at the same time.
Here’s the good news - you can claim as much as £900
If you didn’t know about the Marriage Allowance or forgot to claim, you can backdate the claim right back to when the scheme was launched – 5 April 2015.
(If your partner has died since 5 April 2015, you can still claim)
Here’s how we calculate the £900 –
In the current tax year, the Marriage Allowance is rounded up to £1,190 – the basic rate tax saving of 20% for the taxpayer would therefore potentially be £238.
In previous tax years, the tax-free Personal Allowance was lower –
A total potential saving of £900.
As always, there are some rules. For example, you can’t claim the Marriage Allowance for tax years where the taxpayer is either a higher or additional rate taxpayer.
So, once you’ve made your claim, you only have one thing to lose sleep over. How are you going to spend your £900?
Find out more by visiting the gov.uk site here or call us
Help and advice for a range of business issues
We’re well-connected, experienced accountants who pride ourselves in taking the personal approach. We’re always happy to offer guidance on a wide range of business issues. If we can’t give you the appropriate advice, then we’ll know someone who can.
This legal information is not the same as legal advice and you may not rely on our post as a recommendation of any particular legal understanding. Please, consult an attorney if you’d like to get advice on your interpretation of this article.