UK households have been issued a significant tax warning as many couples may be missing out on up to £252 annually through the Marriage Allowance. This allowance permits a lower-earning spouse or civil partner to transfer £1,260 of their Personal Allowance to their partner, reducing the couple's tax bill by as much as £252 for each tax year.
Backdated Claims Could Reach £1,008
These claims can be backdated to April 6, 2022, meaning eligible couples could be due a total refund of up to £1,008. The allowance applies to married couples and civil partners where one person does not pay Income Tax or earns less than the Personal Allowance, typically £12,570. The other partner must normally pay the basic rate of Income Tax, which usually falls between £12,571 and £50,270. In Scotland, the receiving partner must pay the starter, basic, or intermediate rate, with income between £12,571 and £43,662.
Eligibility and Claim Process
To qualify, couples must be married or in a civil partnership. The person giving up part of their Personal Allowance must make the claim via the government website or by post. For earlier tax years, the partner receiving the allowance may receive a refund from HMRC. Tax codes will likely be adjusted so that the allowance continues automatically until cancelled for future years.
A spokesperson for Vettory, a financial assistance platform, commented: “This is exactly the sort of allowance that can be missed because nothing dramatic happens when you become eligible. A partner may reduce their hours, retire, take time out for caring, or have a lower-income year, and the couple never think to revisit their tax position.”
Important Considerations
Older couples with one person born before April 6, 1935, may be better off checking the Married Couple’s Allowance, as the two allowances cannot be claimed simultaneously. The spokesperson advised: “The key point is that people do not need to pay a refund company just to check this. Use the official GOV.UK Marriage Allowance service first, make sure you meet the rules for every year you are claiming, and set a yearly reminder to review any tax breaks or benefit entitlements that may have changed with your income.”
This warning comes as part of broader efforts to ensure UK households are aware of available tax reliefs and do not miss out on potential refunds.
