Couples may be overpaying up to £1,260 in tax, but they can reclaim it quickly through the Marriage Allowance scheme. The allowance lets a lower-earning partner transfer part of their tax-free personal allowance to their higher-earning spouse, reducing the couple's overall tax bill.
How the Marriage Allowance works
Under the scheme, the higher earner can take home £252 more per year. Claims can be backdated by four years, meaning some couples could receive a lump sum of £1,008 from the government, plus £252 in tax relief for the current tax year — a total potential saving of £1,260.
Who is eligible?
To qualify, your annual earnings must be less than £12,570, the threshold before income tax is due. You can transfer 10% of your Personal Allowance to your partner to increase their tax-free earnings. For the full benefit, your income should be £11,310 or less, allowing you to transfer the entire £1,260 of unused allowance.
After the transfer, your spouse's effective allowance rises from £12,570 to £13,830, saving them £252 per year as they no longer pay 20% tax on that £1,260. However, your spouse must be a basic-rate taxpayer, earning under £50,270 (or £43,662 in Scotland). Those paying higher or additional tax rates cannot claim the allowance. Claimants must be married or in a civil partnership; couples who simply live together are not eligible.
For example, if a husband or wife earns £6,000 per year through part-time work and their partner earns £40,000 per year, they are ideal candidates.
How to apply
The quickest way to apply for Marriage Allowance is through the Government website. After filling in a form, you will receive a confirmation email within 24 hours. If approved, the higher earner will pay less tax through their paycheck during the 2025-26 tax year. HMRC will adjust both partners' tax codes: the tax code will end with 'M' if receiving the allowance, and 'N' if transferring it.
If you are backdating a claim, you will receive a lump sum by bank transfer or cheque. It can take around a month to receive this payment.
