Consumer champion Martin Lewis has launched a scathing attack on what he describes as a "bonkers" tax rule that's preventing thousands of married couples and civil partners from claiming money they're rightfully owed.
The Money Saving Expert founder revealed that a staggering 2.1 million eligible couples are missing out on the Marriage Allowance, a tax break that could put £252 back in their pockets each year - and up to £1,242 for those who backdate their claim.
What Exactly is the Marriage Allowance?
The Marriage Allowance allows individuals to transfer 10% of their personal tax-free allowance to their spouse or civil partner. To qualify, one partner must be a non-taxpayer (earning less than £12,570 annually) while the other pays basic-rate tax.
Yet despite the potential savings, millions are failing to claim due to what Lewis calls an "idiotic" system that requires annual reapplication for some couples.
The 'Utterly Bonkers' Part That Has Experts Fuming
"The system is utterly bonkers," Lewis declared on his ITV show. "If you're in a couple where one of you is a non-taxpayer and the other is a basic-rate taxpayer, you can apply for marriage allowance."
He explained the particularly frustrating aspect: "If you're on certain benefits - pension credit, carer's allowance - you have to apply every single year. It's an idiotic system."
This bureaucratic hurdle means that even couples who successfully claimed one year might miss out in subsequent years simply because they didn't renew their application.
Who Exactly Qualifies for This Money-Saving Break?
- You're married or in a civil partnership
- One partner earns under £12,570 annually
- The other partner is a basic-rate taxpayer (earning between £12,571 and £50,270)
- You're not living together but not separated
How Much Could You Actually Save?
The current Marriage Allowance can reduce your tax bill by £252 annually. Better still, you can backdate your claim for up to four previous tax years, potentially netting you a welcome £1,242 windfall.
Lewis emphasised the simplicity of checking eligibility: "It takes two minutes on the Gov.uk website to see if you're eligible. If you are, it's free and easy to claim."
The Shocking Scale of Unclaimed Money
With 2.1 million eligible couples failing to claim, approximately £500 million in legitimate tax savings is sitting unclaimed in government coffers. This represents one of the largest unclaimed benefits in the UK tax system.
Financial experts are joining Lewis in calling for an overhaul of the system, arguing that the automatic renewal should apply to all eligible couples, not just those not receiving specific benefits.
As Lewis bluntly put it: "This is free money that the government has said you're entitled to. Why wouldn't you check if you can get it?"
