Simple tax tip cuts £252 off your bill – YOU could save £1,220 in 2022. Act NOW

Marriage allowance: Man reveals he had money deducted

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Everyone needs to cut their tax exposure as the cost of living bites, said Adrian Lowery, personal finance expert at investing platform Bestinvest. He is urging couples to claim this valuable tax break which could save them up to £1,220 this year alone.

Around 1.8 million Britons claim the marriage allowance, which is designed to give couples a direct financial incentive to get married or become civil partners.

This tax break is not available to cohabiting couples.

Yet many people who are married or in a civil partnership fail to claim when they could.

Putting in a claim for the marriage allowance is simple and it will save you £252 in the current 2021/22 tax year.

Some could even get a backdated bonus on top.

Married couples and civil partners who have neglected to claim marriage allowance in the past can backdate claims for up to four years.

If they did that, and were eligible for the marriage allowance every year, they would get £1,220 in total.

Many failed to claim after getting married or setting up a civil partnership.

If you are in that position, it’s time to take action now.

Lowery said the marriage allowance works by transferring some of the lower-earning spouse’s tax-free allowance to the higher-paid partner. 

Couples are eligible if one partner earns less than the personal allowance of £12,570, which means they pay no income tax at all.

Their partner must be a basic rate taxpayer. If they are, they can transfer 10 percent of their tax-free allowance to their partner.

This equates to £1,260 for the 2021/22 tax year.

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hey get 20 percent basic rate tax relief on that, which adds up to £252.

Plus couples can claim for the years they have missed, too.

HMRC has been actively encouraging more couples to claim. If you think you are eligible, you can find out more by visiting Government portal gov.uk/marriage-allowance.

It says you can benefit from Marriage Allowance if you’re married or in a civil partnership, do not pay Income Tax or earn below the £12,570 personal allowance, and your partner’s income is between £12,571 and £50,270.

You cannot claim Marriage Allowance if you are living together but are not married or in a civil partnership.

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