The Marriage Allowance has been around since 5 April 2015. It allows you to transfer 10 % of your Personal Allowance (£1,150) to your husband, wife or civil partner – if they earn more than you. This reduces your partners tax by up to £230.
Who can apply for Marriage Allowance?
You need to meet the following conditions in order to apply for the marriage allowance:
· You and your partner were born after 6 April 1935
· You’re married or in a civil partnership
· Your income is £11,500 or less
· Your partner is a basic rate taxpayer (ie. income between £11,500 and £45,000 or £43,000 in Scotland)
If all these conditions apply, you claim can be backdated to include any tax year since 5 April 2015 that you were eligible for Marriage Allowance. You will keep getting the tax break in the future too as long as the eligibility doesn’t change. If your circumstances do change, you or your partner can cancel the marriage allowance online.
How to apply
To apply for it online, follow this link https://www.gov.uk/apply-marriage-allowance
To apply by phone, you can call HMRC on this number 0300 2000 3300
You will need yours and your partners national insurance number and something to prove your identity.
More information can be found here:
As usual, if you would like any further details on this or any other accountancy matters, please follow this link:
In the meantime, here is a download for next month’s tax deadlines: October tax dates