Couples Must Act Before April 5 to Secure Up to £1,000 Tax Refund
Couples across the UK, including those who are separated or have lost a partner, are being urged to check their eligibility for a significant tax refund that could amount to as much as £1,000. The critical deadline for submitting claims to secure backdated payments is fast approaching on April 5, 2026, as highlighted by finance expert Laura Pomfret during a recent appearance on BBC Morning Live.
Understanding the Marriage Tax Allowance
Laura Pomfret emphasised that the Marriage Tax Allowance is a little-known rule that allows one partner to transfer a portion of their personal tax allowance to the other. This transfer can reduce the higher earner's tax bill by up to £252 annually. Crucially, claims can be backdated by up to four tax years, potentially resulting in a total refund of £1,008 if eligible for the full period.
She explained, "It lets you transfer some of your personal tax allowance to your partner to reduce the amount of tax that they pay on their income. It can reduce your partner's tax by up to £252 per year, and you can go back four years." However, she warned that time is of the essence, stating, "You need to act quickly because to get that backdated payment to 2021-22, you need to do it before the end of the tax year by April 5."
Eligibility Criteria for the Allowance
To qualify for the Marriage Tax Allowance, specific income thresholds must be met. The key requirements include:
- One partner must earn more than the personal allowance of £12,570 but less than £50,270 annually.
- The other partner must earn less than £12,570 per year.
- Both individuals must be in a marriage or civil partnership, though claims can still be made if the couple has since separated or if a partner has passed away, provided they were eligible during the relevant tax years.
Laura Pomfret detailed, "The marriage allowance lets the person earning less transfer £1,260 of their allowance to their partner. So their spouse has an increased personal allowance of £13,830 instead of £12,570, which means they'll have a little less of their income taxed at the 20% base rate." She also cautioned that the lower earner, after transferring their allowance, will have a reduced personal allowance of £11,310, and if their income exceeds this amount, they will be taxed at 20%.
How to Claim and Important Considerations
Claiming the Marriage Tax Allowance is straightforward and can be done online via the Government website or by post. Both parties must consent to the claim, and the lower earner is responsible for submitting the application to HMRC, as it involves transferring their allowance.
For those whose partners have died since April 5, 2021, Laura Pomfret advised, "You can still claim by calling the income tax helpline on 0300 200 3300, but it's worth checking eligibility first." She reassured couples that the process "really doesn't take that long" and could result in hundreds of pounds being returned to their pockets.
This financial opportunity underscores the importance of proactive tax planning, especially as the tax year end approaches. Couples are encouraged to review their circumstances promptly to avoid missing out on potential refunds.
