This relief is especially helpful for those on maternity leave, working part time or even receiving pension income below the personal allowance. The relief can be used for just one year or you can continue to claim until ineligible.
Once a claim is made, it is automatic moving forwards, so it is important to let HMRC know when you are no longer eligible to claim this relief to avoid having to backpay any of the funds received.
How does it work?
It works by letting you transfer 10%, currently £1,260, of your personal allowance to your husband, wife, or civil partner which in turn will then reduce their tax bill in the year by up to £252.
To benefit from this:
How can you apply?
You can apply using the below link online, or alternatively, if you already complete self-assessment tax returns, you are able to make a claim within your annual return.
If you are unable to use either of the above options, you can claim via post. We have included a link to the form below, also.
Apply for Marriage Allowance online – GOV.UK
Postal application form: MATCF – Marriage Allowance transfer
Common questions:
Q: how do I backdate my claim?
A: You can backdate your claim to include any tax year since April 2021 that you were eligible. You can apply online using the above link. The person in the couple that earns the least should be the one to apply as you will be transferring your personal allowance to your partner.
Q: what happens if I get married part way through a year, or separate from my partner, am I still eligible?
A: Yes, you are still eligible for the whole of that year if you marry or separate part way through the year, so long as you meet all the other requirements set out above.
HMRC have a helpful calculator that allows you to work out how much tax you could save as a couple by applying for the Marriage Allowance. We have popped a link below to this:
Eligibility Criteria – Marriage Allowance – GOV.UK
Q: how do I cancel my claim?
A: You will need to cancel your claim if you no longer wish to make a claim, your relationship ends, or your income changes so that you are no longer eligible to claim.
You can complete this online or by phone.
Note: you are not able to do this via your self-assessment tax return.
If you have any questions around this please get in touch.
Give us a call on 01872 267 267, email us contact@whyfield.co.uk, or message us on WhatsApp 0777 49 39 111
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