Martin Lewis has highlighted a significant tax break that could put up to £1,260 back into the pockets of eligible couples, as a viewer of his Money Show Live shared how he and his wife claimed £1,000 from HMRC using the marriage tax allowance.
How the Marriage Tax Allowance Works
The scheme allows a non-taxpaying spouse or civil partner to transfer 10% of their personal allowance to their partner. This can save couples £252 annually if one partner is not working and the other pays basic rate tax. The personal allowance for the 2026/27 tax year is £12,570, meaning the transfer can increase the recipient's tax-free allowance to £13,830.
Eligibility applies to married couples or civil partners where one person earns less than £12,570 per year. Those who have not previously claimed can receive a lump sum backdated for up to four years, totalling £1,260.
Viewer's Success Story
A viewer who retired on medical grounds shared his experience on the show. He explained: "I was able to claim, I think it was about 4 years of back tax, which was about £1,000." The couple used the windfall for a holiday in Cornwall during the wife's recovery from chemotherapy. He added: "If you can save a few pounds here and a few pounds there, it's money in the pocket."
Millions Missing Out
Martin Lewis emphasised that around 2.1 million eligible people are not claiming this benefit. He urged viewers to check their eligibility and apply via the UK government's website or through the HMRC app. The claim process is straightforward and can be done online.
The marriage tax allowance is a valuable tool for low-income households, particularly where one partner is not working due to retirement, disability, or caring responsibilities. The backdated lump sum can provide a significant financial boost for those who have missed out in previous years.
