One million still to claim marriage allowance

Despite three million UK couples already claiming Marriage Allowance, there are still one million who are eligible but are yet to claim.

According to the HMRC roughly three million UK based couples have boosted their finances with Marriage Allowance, with 300,000 doing so in the last six months.  However, over one million married and civil partnered couples are still eligible for the free tax break, worth up to £238 a year.

Marriage Allowance allows you to transfer £1190 of your Personal Allowance to your husband, wife or civil partner if they earn more than you and reduces their tax by up to £238 in the tax year.   To benefit from this, you or your partner must have an annual income of £11,850 or less. The individual who earns the least will then be able to transfer some of their tax- free Personal Allowance to their partner.

HMRC are keen for all eligible couples to make their claims. Pointing out that the benefit can be backdated, boosting their payment by up to nearly £900. You can backdate your claim to include any tax year since 5 April 2015 that you were eligible. All you need is both National Insurance numbers and proof of identity – either details from your P60, payslips, passport or bank account.

It couldn’t be easier for couples to make their claim and as soon as an application is complete it is processed immediately. Recently a new online form was introduced, which takes less than 10 minutes to complete.

Once a couple’s application is successful both parties will be issued with new tax codes to reflect the new allowances. In terms of payroll process, the code is then altered once a notice is received from HMRC.  Eligible customers will receive backdated claims, of up to £662, as a lump sum.

If you have any questions regarding Marriage Allowance please get in touch with the Payroll team at Garbutt + Elliott.