What is marriage benefit, how can I claim the tax benefit and who is eligible?
THOUSANDS of couples could be eligible for tax relief worth up to £1,256.
The impetus comes through the marriage benefit. Here you will find everything you need to know about it.
What is the marriage tax deduction?
The Marriage Allowance allows married couples or people in a civil partnership to share their personal tax allowance, which currently stands at £12,570.
You can transfer 10%, which reduces the tax your partner pays by a maximum of € 252 per year.
You can also submit a claim retroactively for up to four years, so that you can receive a maximum refund of € 1,256.
Are I and my partner eligible?
In a nutshell, one of you in the relationship doesn’t need to earn enough to pay taxes, while the other person needs to earn enough to benefit from the 20% basic tax rate.
But there are special circumstances that must apply to benefit from the tax benefit:
- You are married or have a registered partnership
- You or your partner must be a non-taxpayer, meaning you or they earn less than this tax year’s personal allowance, which is £12,570.
- The other person in the relationship must earn less than £50,270, which is the upper limit of the basic tax rate of 20%.
- You must both have been born on or after April 6, 1935.
HMRC recently revealed that March is the most popular month for marriage benefit claims, with almost 70,000 claims made in the month last year.
How can I apply?
The lower fee payer or non-taxpayer must apply.
The easiest way is to fill out a form on the website Government website.
You will need both your Social Security number and non-taxpayer identification.
You can also register via self-assessment or via write to HMRC.
The requirements you must meet include being a married couple or a civil partnership – and being born on or after April 6, 1935.
Whichever way you apply, any money you owe retroactively will be automatically calculated and sent to you as a check.
If you need help applying, you can call the HMRC helpline on 03000 200 3300.
Here’s how much the exemption is worth for the current and past four tax years:
- 2023/24 – £252
- 2022/23 – £252
- 2021/22 – £252
- 2020/21 – £250
- 2019/20 – £250
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