Tag: Marriage Allowance

Marriage Allowance: Find out if you could be better off in just 30 seconds

Couples who are married or in a civil partnership are being urged by HM Revenue and Customs (HMRC) to spend just 30 seconds to see if they can claim Marriage Allowance and boost their finances by up to £252 a year.

By using HMRC’s online Marriage Allowance calculator during Talk Money Week, couples can find out instantly if they are eligible. Couples who may be unaware that they could claim include those where one partner is working and the other has income less than their personal allowance of £12,570, including those who: 

  • have retired
  • have given up work to care for children or elderly relatives
  • are unable to work because of long term health conditions
  • have a part time job
  • have a low paid job

It is quick and easy to claim Marriage Allowance for free via GOV.UK. Applying directly on GOV.UK means couples will receive 100% of the tax relief due.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:  “The Marriage Allowance calculator helps couples to find out in seconds how much they stand to benefit. Check today and claim right away. It’s a quick and easy process that’s worth up to £252 a year.

“Search ‘Marriage Allowance’ on GOV.UK for more information.”

With around 68 per cent of people in their sixties married or in Civil Partnerships, many people in this age group may not realise they can claim Marriage Allowance if they have retired and their partner is still working.

UK Men’s Sheds, a charity which brings together retired men to meet at community workshops, is flagging this with their members.

Charlie Bethel, Chief Officer, UK Men’s Sheds, said: “If you have retired and your partner is still working, you may not realise that you could apply for Marriage Allowance.

“As a charity that brings retired men together, we are urging our members throughout the UK to invest the 30 seconds of time it takes to find out if they can claim.”

Marriage Allowance saves couples money by allowing the lower or non-earner to reduce the amount of tax their partner pays. Most people have a Personal Allowance, normally £12,570 – the amount of income they do not have to pay tax on. Marriage Allowance lets the lower earner transfer £1,260 of their Personal Allowance to their husband, wife or civil partner.

This can reduce their tax by up to £252 annually. If eligible, couples can also backdate their claim for the previous four tax years and receive a lump-sum payment worth more than £1,000.

To benefit from the tax relief in Scotland, one partner must have income less than £12,570 and the higher earning partner’s income must be between £12,571 and £43,662.

https://youtu.be/FEXgvuPdIEg

HMRC has produced a YouTube video to explain who is eligible and how to apply.

Give the gift of Marriage Allowance on Valentine’s Day 

Married couples are being urged to consider giving the gift of Marriage Allowance to their husband, wife or civil partner this Valentine’s Day, and save up to £252 a year.   

More than 2.1 million couples currently benefit from Marriage Allowance, but HM Revenue and Customs (HMRC) estimates that thousands more couples are missing out because they don’t realise they may be eligible, particularly couples where one partner has retired, has given up work to take on caring responsibilities, or is unable to work due to a long-term health condition.    

Customers earning less than £12,570 a year can transfer up to £1,260 of their Personal Allowance to their higher-earning partner, to reduce the amount of tax they pay. They can backdate their claim to include any tax year up to 6 April 2018, which could be worth up to £1,242 in tax relief. 

Couples can use the free Marriage Allowance calculator on GOV.UK to check if they are eligible for the tax relief.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We want every eligible couple to benefit from marriage allowance tax relief. Couples whose circumstances have changed – perhaps one of them has stopped working or taken a lower paid job – may not realise they are entitled to claim.

“It’s easy to find out what you may be due – search ‘Marriage Allowance calculator’ on GOV.UK to get started. By applying on GOV.UK, rather than through a third party, you get to keep 100% of the tax relief due.” 

Those who are eligible can apply at GOV.UK for free and keep 100% of their claim. Successful claims will result in a reduction in the amount of tax paid by the higher-earning partner.  

Couples could benefit from Marriage Allowance if the following criteria applies: 

·         they are married or in a civil partnership 

·         they do not pay income tax, or their income is below the Personal Allowance of £12,570  

·         their partner pays income tax at the starter, basic rate or intermediate rate – which typically means their income is between £12,571 and £43,662

Marriage Allowance can be cancelled on GOV.UK if a couple’s circumstances change.  

To find out what other UK Government support may be available, go to GOV.UK and search ‘Help for Households.’  

HMRC: Couples urged to “say yes” to Marriage Allowance proposal

At the height of the wedding season, HM Revenue and Customs (HMRC) is reminding married couples and people in civil partnerships to put extra cash at the top of their gift list and sign up for Marriage Allowance.

Marriage Allowance allows married couples or people in civil partnerships, including those who have been together for many years, to share their personal tax allowances if one partner earns below the Personal Allowance threshold of £12,570, and the other is a basic rate taxpayer.

Eligible couples can transfer 10% of their tax-free allowance to their partner, which is £1,260 in 2022/23. It means couples can reduce the tax they pay by up to £252 a year. They can apply any time and, if eligible, could backdate their claims for up to four previous tax years to receive a payment of up to £1,242.

Marriage Allowance is free to apply for, and customers are reminded to claim directly via HMRC’s online portal to ensure they receive 100% of the tax relief they are eligible for. Visit GOV.UK to find out how to apply for Marriage Allowance.

Marriage Allowance is one of a number of benefits and reliefs available to boost family finances at a time when many are concerned with the rising cost of living.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We want to ensure people are receiving vital financial support at a time when they need it most.

“Married couples or those in a civil partnership could potentially receive tax relief worth up to £1,242, meaning extra cash in their pockets.

“To find out if you are eligible and how to apply search ‘Marriage Allowance’ on GOV.UK.”

More than 2 million couples currently benefit from Marriage Allowance, but there could be thousands more who are eligible to claim.

Even if couples don’t qualify for Marriage Allowance when they first get married, a change in circumstances years later could mean they become newly eligible. These include:

  • one partner retiring and the other remaining in work
  • a change in employment
  • a reduction in working hours which means their earnings fall below their Personal Allowance
  • maternity, paternity, or shared parental leave
  • unpaid leave or a career break
  • one partner studying or in education and not earning above their Personal Allowance

If a spouse or civil partner has died since 5 April 2018, the surviving person can still claim by contacting the Income Tax helpline.

Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change.

HMRC customers in Scotland encouraged to check out financial support available to them

Customers in Scotland are being encouraged to check online for the range of financial support available from HM Revenue and Customs (HMRC) to help with living costs.

HMRC has listed the support available in one place to ensure people are not missing out and can easily find out online if they are eligible and how to claim.

The new GOV.UK page pinpoints people to a one-stop shop of all the benefits, credits and allowances available to individuals and families, making it easier than ever for people to claim what they are entitled to.

This includes:

Child Benefit

Child Benefit can be claimed if someone is responsible for bringing up a child who is:

  • under 16
  • under 20 if they stay in approved education or training

Only one person can get Child Benefit for a child. It’s paid every 4 weeks and there’s no limit to how many children you can claim for.

Tax-Free Childcare

Working parents can get assistance of up to £500 every 3 months (up to £2,000 a year) for each of their children to help with the costs of childcare until the September after their 11th birthday. If a child is disabled, this goes up to £1,000 every 3 months until the September after their 16th birthday (up to £4,000 a year).

Marriage Allowance

Marriage Allowance allows individuals to transfer 10% (£1,260) of their personal tax allowance to a husband, wife or civil partner if they earn less than the personal tax allowance, which is usually £12,570.

Work-related expenses and uniform allowances

Tax relief can be claimed on money spent on things like work uniform and clothing, tools, subscriptions or business travel.

The GOV.UK page also includes guidance for those on a low income wanting to make the most of their savings and help for those struggling to pay their tax bill.

Myrtle Lloyd, Director General Customer Services Group, HMRC: “We understand these are very difficult times for many so it’s vitally important we continue to highlight the range of support available.

“We’d encourage those who think they may be eligible for support to take a look and claim what they’re entitled to – it could make an important difference to household budgets at a time when it’s needed the most.”

Additional online tools and guidance are available to help customers check if they are eligible for each service – as well as extra support to guide them through the application process.

All you need is … Marriage Allowance!

Married couples and people in civil partnerships could receive extra cash this Valentine’s Day as HM Revenue and Customs (HMRC) encourages those eligible to sign up for Marriage Allowance to reduce their tax bill.

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. 

Eligible couples can transfer 10% of their tax-free allowance to their partner, which is £1,260 in 2021/22. It means couples can reduce the tax they pay by up to £252 a year. Couples can apply any time, backdate their claims for any of the four previous tax years and receive a payment of up to £1,220 at a time when they need it most.

Marriage Allowance is one of the ways the government is helping couples to receive extra money back in their pocket each month. The financial support could help couples where they need it most, including household bills.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “Couples could be sitting on a tax relief worth up to £1,220 that could provide vital financial support at a time they need it most. To find out if you are eligible and how to apply search ‘Marriage Allowance’ on GOV.UK.”

More than two million couples have applied for the tax relief since it was launched in 2015 but there could be thousands more who are eligible to claim.

Marriage Allowance is free to apply for, and customers who claim directly via HMRC’s online portal will receive 100% of the tax relief they are eligible for. Visit GOV.UK to find out how to apply for Marriage Allowance.

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

·         a recent marriage or civil partnership

·         one partner has retired and the other remains working

·         a change in employment due to COVID-19

·         a reduction in working hours which means their earnings fall below their Personal Allowance

·         unpaid leave or a career break, or

·         one partner is studying or in education and not earning above their Personal Allowance

If a spouse or civil partner has died since 5 April 2017, the surviving person can still claim by contacting the Income Tax helpline.

Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change.Marriage Allowance is 10% of an individual’s tax-free personal allowance.

The maximum amount that can be transferred to their husband, wife or civil partner is dependent on the Personal Allowance for that tax year:

Tax YearMarriage Allowance amount
2021/22£252
2020/21£250
2019/20£250
2018/19£238
2017/18£230

1.8 million couples benefitting from extra tax relief

Nearly 1.8 million married couples and those in civil partnerships are using Marriage Allowance to save up to £252 a year in Income Tax, HM Revenue and Customs (HMRC) has announced.

Summer has always been a popular season for weddings, and newly married couples or those in civil partnerships could be eligible for the tax saving. And even if they 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% of their tax-free allowance to their partner, which is £1,260 in 2021/22. It means couples can reduce the tax they pay by up to £252 a year. Couples can backdate their claims for any of the four previous tax years, which could be worth up to a total of £1,220.

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

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, including:

·         A recent marriage or civil partnership

·         One partner has retired and the other remains working

·         A change in employment due to COVID-19

·         A reduction in working hours which means their earnings fall below their Personal Allowance

·         Unpaid leave or a career break, or

·         One partner is studying or in education and not earning above their Personal Allowance

If a spouse or civil partner has died since 5 April 2017, the surviving person can still claim by contacting the Income Tax helpline.

Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change.