If you are married, you may be eligible for a £212 return on your tax bill, known as the Marriage Allowance.
The new rule came into force last April and allows you to give part of your Personal Allowance to your partner. According to Money Saving Expert only 10% of eligible couples (either married or in a civil partnership) have claimed this cash, so here’s how you can get what you’re owed.
Who is eligible for Marriage Allowance?
In order to claim this allowance, either you or your partner must be classified as a non-taxpayer – this means that you earn less than £10,600 a year. The other partner must pay the basic tax rate of 20%, i.e. those earning under £42,385.
You will need to be married or in a civil partnership. Unmarried couples who are living together are not eligible.
How does it work? The non-taxpayer can transfer £1,060 of their personal allowance – the amount the government allows you to earn without paying tax – to their partner.
Once the personal allowance has been transferred, your household will gain an extra £212 for the tax year. And from April 2016 this will rise to £220.
How do you claim it?
Claiming the Marriage Allowance is really easy. The non-taxpaying partner should visit www.gov.uk/marriage-allowance and fill out the form. Alternatively the non-taxpayer can call 0300 200 3300.
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