Couples urged to agree to Marriage Allowance proposal

Her Majesty’s Revenue and Customs (HMRC) is urging married couples to sign up for the Marriage Allowance, which could help save £252 a year.

This will help partners share personal tax allowances between them if one of the couple earns below the Personal Allowance threshold of £12,570, whilst the other pays a basic rate of tax.

Couples who are eligible can transfer 10% of their tax-free allowance to their partner, which is £1,260 in the 2022 to 2023 tax year. They can apply anytime and backdate their claims, potentially, for up to four of the previous tax years to receive and extra £1,242.

This allowance is a free application and can be applied to via HMRC’s online portal, which will ensure they receive 100% of the tax relief they are entitled to.

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.”

Many couples are already signed up to the scheme, but many more are not enjoying the benefits. Even if not currently eligible, there are potential new changes which could entitle more to Marriage Allowance. 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

Marriage Allowances are renewed automatically each year, which means once applied for the benefits will arrive through no extra effort.