As accountants we try to keep our information real and to be a little different. We know that Valentine’s Day was a few weeks ago and thinking about taxes when you’re proposing or being proposed to, isn’t that romantic BUT getting married has its perks. Have you considered applying for the Marriage Allowance?
HMRC made a proposal itself on February 14th, married couples and those in civil partnerships could sign up to a £250 tax break.
It is estimated that there are more than 2 million couples missing out on up to £250 this year. The 5th April 2020 is the latest you can backdate a claim for the 2015/16 tax year so in essence you could receive up to £1,150 if you get applying quickly.
Applying for the Marriage Allowance is a quick way for married couples and people in a civil partnership to have an extra £250 or more in their family funds.
What is Marriage Allowance?
Marriage Allowance allows people with less than £12,500 in income each tax year, to transfer up to £1,250 of their Personal Allowance to their husband, wife or civil partner – if that person’s income is higher than £12,500 per year. As a 20% taxpayer you will then pay £250 less tax per year, but don’t forget that is spread throughout the year unless you are making a backdated claim for previous years.
Claims can be backdated four years to April 2015, after the 5th April 2020 you will only be able to claim back to the 2016/17 year.
There is no need to use an accountant or an agency to apply, they will only charge you a fee and/or take a cut of the rebate. You can receive 100% of the rebate if you apply direct to HMRC.
Couples in England, Wales and Northern Ireland can benefit from Marriage Allowance is all the following apply:
You are married or in a civil partnership
You do not pay income tax, or your income is below your Personal allowance (usually £12,500).
Your partner pays income tax at the basic rate between £12,501 and £50,000.
Couples in Scotland have the same criteria, except your partner must pay income tax at the starter, basic or intermediate rates between £12,501 and £43,430.
There are currently four million married couples and 15,000 civil partnerships that could benefit from Marriage Allowance.