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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.

Why Hire an Accountant

We know what you’re thinking — you’ve been told time and time again you should hire an accountant to look out for the financial success of your new business, but you ask yourself; do I really need somebody else on hand, looking through my books — can’t I just do it myself?

In truth, yes you can. It may seem counterintuitive for us to say, but if you’re a very small, recently formed business, you can get by without an accountant for a short period. But the question is, why would you want to?

So, why hire an accountant? Possibly the most logical reason to hire an accountant is due to the simple fact that they’re on your side; your success if their success. For this reason, hiring an accountant is much more of an investment rather than an expense. Mostly because when you choose to take on an accountant…

They uncover hidden savings

An accountant can uncover obscure, hidden savings in your accounts that you, as a business owner (new or old), wouldn’t necessarily think to look for.

This may sound like an immodest boast, but it makes perfect sense when you think about it. Chances are you are entirely on top of your industry, as you keep up with every little change that takes place; day in, day out. The same is true of an experienced, professional accountant.

For this reason, your accountant can provide you with proactive business advice whenever an occasion calls for it, helping you to take advantage of new government legislation the moment it comes into force, and therefore greatly impacting your bottom line.

They save you time and headaches

There’s a good chance that the daily financial management of your business is by far your least favourite activity of the day. It's probably a good idea to hand these tasks over to a professional then, while you can use your newly-saved time to focus on areas of your business that you are an expert at improving.

It’s sounds like a cliche, but when you hand over your accounting work to a professional accountant you’ll also save yourself numerous headaches, as you know your accounts are being kept up to date at all times and all necessary forms are being filed — something it’s often hard to remind yourself to keep up with.

They identify new tax planning opportunities

New tax planning initiatives are frequently being unveiled by the government, and though you may have your ‘finger on the pulse’ to some extent, it’s your accountant who will be paying special attention to these areas. This is because they know that money saved for their clients (including you) encourages you to continue the relationship.

Whether these are tax planning opportunities you're not currently taking advantage of, advising you to reconsider whether you’re still applying the best VAT scheme as your business grows, or identifying a way for you to maximise your tax credit claims, hiring a proactive, experienced accountant will ensure that these new opportunities are available to you on a regular basis.

Professional, experienced accountants

To speak with professional, experienced accountants to discuss how we can help you and your very unique business needs, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.


This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.


What is the future of UK taxes after Brexit?

With all the uncertainty surrounding Brexit and the confusion about what this will mean for the UK once it has left the EU, Tax Agility can understand that this may be worrying for you. As chartered accountants, we aim to help our clients with any accountancy and/or tax issues they may have. With real issues surrounding tax and its potential changes hitting the headlines, we want to reassure our clients that even though things may be different, they don’t have to be scary.

What’s the issue?

Deciding to leave the EU has put the UK in a bit of a precarious situation, especially with respects to the future of UK taxing. Traditionally, the EU has supplied all of its member countries with massive monetary contributions, which have manifested in the form of grants, subsidies, and bursaries that have all assisted the UK economy in some way.

Without money from the EU, the UK will need to source money from its own economy in the form of taxes, and this is what is making a lot of people nervous. In order to ensure that the UK’s overall economy will not suffer too much after Brexit, a broad and stable tax base is needed. Such a tax base should be fair for all UK citizens, which means that the chancellor of the Exchequer has a lot to think about as the Brexit negotiations continue.

How can Tax Agility help?

As chartered accountants, we are very well versed in the ins and outs of UK taxes. We make it our business to ensure that we are up to date with all changes to the taxation system, should they occur. Whether you are a business owner or just a tax paying citizen, understanding that things may change after Brexit is important and you should be prepared for your future.

Our experienced advisors can aid you with developing a clear and easy to follow tax plan that can support you with optimising your tax position. We will provide you with expert advice that will allow you to get to grips with your finances and ensure that you are well equipped for living in the UK after Brexit.

Contact us today

If you’re unsure about how Brexit has the potential to change your tax paying habits, call us today on 020 8780 2349. Even though nothing is set in stone just yet, we can help you to prepare for your future.