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63386843 - household account book and a housewife

Do you qualify for marriage allowance?

63386843 - household account book and a housewifeAccording to HM Revenue and Customs, nearly half the couples that are eligible to claim marriage tax allowance are still failing to do so. The tax allowance, amounting to £230 a year, can be given to all married couples and civil partnerships provided that they also conform to basic income criteria.

Marriage tax allowance was introduced in 2015, and since then only 2.2 million couples have claimed it, from the 4.4 million couples that are eligible. In order to help and encourage couples to apply for the marriage allowance, the government has since simplified the application process. HMRC have also launched several advertising campaigns urging people to apply and highlighting the eligibility criteria.

How does marriage allowance work?

There are some basic criteria that partners must fulfil in order to qualify for the marriage tax allowance. This criteria includes:

  • Partners must be married or in a civil partnership.
  • One partner must be working and paying the basic tax rate of 20%. If they earn over £45,000 they will not be eligible.
  • The other partner must be earning less than £11,500 in 2017-18 and be paying no taxes.
  • If these conditions are met, the partner who is not paying tax can transfer 10% of their tax allowance to their partner, so saving £230 within the tax year.
  • You can backdate your claim to include previous tax years since 2015.

How can you apply for marriage allowance?

Applying for marriage tax allowance is straightforward. You can complete the form online on the gov.uk website.

Before you complete the form, you should have a few things to hand:

  • Your National Insurance Number
  • Your partner’s National Insurance Number
  • A way to prove your identity. Can be any of the following:
    • the last four digits of the account that your child benefit, tax credits or pension is paid into
    • the last four digits of an account that pays you interest
    • details from your P60
    • details from any of your 3 most recent payslips
    • your passport number and expiry date

With this information you can easily apply for marriage tax allowance and receive £230 a year. Don’t forget to check whether you might be eligible for back pay from previous tax years since 2015.

How can Tax Agility help?

At Tax Agility, we are skilled chartered accountants who specialise in helping individuals with their tax needs. We can find out if you’re eligible for any tax breaks, such as the marriage tax allowance, and work with you to apply for these and subsequently benefit from them.

In addition, we can also help you to deal with your everyday finances. It’s important to us that you and your family are aware of the finances available to you so that you can properly plan for your future. By working with us, you will receive professional advice and assistance on how to make the most out of your income.

If you’d like any further information on how Tax Agility can help you with your finances and taxes, contact us today on 020 8780 2349 or use our enquiry form.