Money-saving expert Martin Lewis has issued a crucial alert to married couples and civil partners, urging them to act on March 1 to secure a tax break worth up to £1,260. The deadline for claiming backdated allowances is April 5, the end of the tax year.
Lewis explained that the Marriage Tax Allowance allows a non-taxpaying partner to transfer 10% of their personal allowance to their spouse or civil partner, who must be a basic-rate taxpayer. This can result in a gain of £252 per year, with backdated claims for up to four previous tax years.
To qualify, one partner must earn less than the personal allowance of £12,570 and not pay income tax, while the other must pay tax at no more than the 20% rate. The transferred allowance increases the taxpayer's threshold to £13,830.
Lewis noted that the government's online application system is currently down for essential maintenance until March 1, calling it 'terrible timing'. He advised couples to mark that date to apply online or download a form to post before April 5.
An estimated 2.1 million eligible couples are missing out on this benefit. Lewis stressed that even if one partner earns slightly above the threshold, the arrangement is usually beneficial as long as the taxpayer earns over £13,830.
