Couples can save annual costs

HM Revenue and Customs (HMRC) has revealed that nearly 1.8 million married couples and those in civil partnerships across the UK are using Marriage Allowance to save up to £252 a year in Income Tax.

Even if the couple have been married for years, a change in circumstances could also mean they are newly eligible.

Marriage Allowance allows married couples or those in civil partnerships to share their personal tax allowances if one partner earns an income under their Personal Allowance threshold of £12,570 and the other is a starter, basic or intermediate rate taxpayer.

They can transfer 10 per cent of their tax-free allowance to their partner, which is £1260 in 2021/22.

It means Monklands couples can reduce the tax they pay by up to £252 a year and they can backdate their claims for any of the four previous tax years, which could be worth up to a total of £1220.

It is free to apply for Marriage Allowance and the easiest way for taxpayers to check eligibility and make a claim to receive 100 per cent of the relief they are entitled to is via the GOV. UK website.

Angela Macdonald, HMRC’S deputy chief executive and second permanent secretary, said: “Marriage

Allowance lets eligible couples share their Personal Allowances and reduce their tax by up to £252 a year.

“Nearly 1.8 million couples are already using the service – it is free, quick and easy to apply, just search ‘marriage allowance’ on GOV.UK.”

Married couples may have experienced a change in their circumstances which could now mean they are eligible for Marriage Allowance.

These include: a recent marriage or civil partnership; one partner has retired and the other remains working; and a change in employment due to Covid-19.