HMRC Urges Couples To Check Their Tax Allowance

Roses are red, violets are blue, tell HMRC, for a tax break for two! HM Revenue and Customs (HMRC) is urging married couples and people in civil partnerships across the UK to sign up for a tax break this year.

According to a GOV.UK press release, Marriage Allowance offers individuals the opportunity to transfer part of their personal allowance to their husband, wife, or civil partner, which potentially could reduce their tax bill by up to £250 a year.

Some couples may be eligible to claim for a backdated payment of up to four years, which could be as much as £1,188. It is free to apply for Marriage Allowance through the online portal.

Angela MacDonald, HMRC’s Second Permanent Secretary, said: “For some, a tax break will be a welcome source of extra cash during these difficult times. I urge couples to take advantage of this offer, which could put up to £250 back in their pockets each year.

“Signing up is simple – the quickest way to claim is through the GOV.UK website, just search ‘marriage allowance’.”

Marriage Allowance lets people earning £12,570 or less transfer up to £1,250 of their Personal Allowance to their husband, wife or civil partner – if their income is higher and they are a starter, basic or intermediate rate taxpayer.

This will reduce their tax by up to £250 for the 2021 to 2022 tax year, and claims can also be backdated to April 2017 until 5 April 2021.

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

If you need tax planning accountants, talk to us today.

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