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Marriage Allowance - Make Sure You're Not Missing Out On Potential Tax Relief

HMRC have recently issued an article stating that over one million people are eligible but not taking advantage of the marriage allowance, which can save an individual £238 tax per year.

The marriage allowance transfers part of a spouses personal allowance to the partner, allowing one partner to have an additional £1,190 of tax free income for 2018-19. In order to benefit from this allowance, the transferor should have income below the personal allowance of £11,850, and the transferee cannot be a higher or additional rate tax payer.

This allowance came into action on 6 April 2015 and as such any claims made can be back dated. As a result of this, is it possible for an individual, where their spouse or civil partner has been earning below the personal allowance, to receive a repayment of up to £900.

Claiming marriage allowance is not automatic and it is up to the non-taxpayer (the transferor) to contact HMRC to request the relief. This can be done using HMRC’s online service or by telephone. Alternatively, marriage allowance can be claimed through self assessment tax returns.

For more information please get in touch, and to claim online with HMRC please follow the below link.

https://www.gov.uk/apply-marriage-allowance

The content of this article is for general information only and does not constitute tax advice. It should not be relied upon and action which could affect your business should not be taken without appropriate professional advice.

Written by Danny Henville ACCA


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