Married couples and those in civil partnerships could receive a minimum of over £200, and a maximum of over £1,200 by signing up for Marriage Allowance. HM Revenue and Customs (HMRC) states that Marriage Allowance allows couples to 'share their personal tax allowances if one partner earns below the Personal Allowance threshold of £12,570, and the other is a basic rate taxpayer'.
Marriage Allowance is free to apply for. More than two million couples currently claim the Allowance, but thousands more could be eligible to claim.
Couples who have been together a long time can still apply, and can backdate their claims for up to four years. If a spouse or civil partner has died since 5 April 2018, the surviving person can still claim by contacting the Income Tax helpline.
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Eligible couples can transfer 10% of their tax-free allowance to their partner, which is £1,260 in 2022/23. It means couples can reduce the tax they pay by up to £252 a year.
Couples can backdate their claims for up to four tax years. This means you could receive a maximum payment of up to £1,242.
You claim directly via the HMRC online portal. You will then receive 100% of the tax relief you're eligible for.
If you don't initially qualify for Marriage Allowance, a chance in circumstances later down the line could mean you become eligible. The circumstances that may make you eligible include: one partner studying or retiring; changing employment; reducing working hours which means one partner's earnings fall below their Personal Allowance; maternity, paternity or shared parental leave; unpaid leave; a career break.
Marriage Allowance claims are automatically renewed every year. Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said, "We want to ensure people are receiving vital financial support at a time when they need it most.
"Married couples or those in a civil partnership could potentially receive tax relief worth up to £1,242, meaning extra cash in their pockets. To find out if you are eligible and how to apply search ‘Marriage Allowance’ on GOV.UK.”
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