If your New Year’s resolution is to take control of your family’s finances for 2024, then the following information is going to be invaluable! Marriage Allowance is like a little financial boost for married couples or civil partners, helping with everyday expenses like the food shop, bills, and household needs.
For families who qualify, there’s a potential tax relief of up to £1,242 that often goes unclaimed by around 2.4 million eligible families who either don’t know about this entitlement or are put off by the application process. Thankfully, the Claims Advisory Service is here to simplify the process, making it easy for couples to access this helpful tax break and receive the financial assistance they are entitled to.
Let’s delve into what the Marriage Tax Allowance is all about and who in your family can benefit from it.
Marriage tax allowance allows you to share £1,260 of the amount you can earn tax-free each tax year with your spouse or civil partner if they earn more than you. It’s a way of making the most of your combined allowances. This tax break is available for married couples or those in a civil partnership with a total household income under £62,840.
Once your claim is approved, the partner with the higher income gets a reduced tax bill for that tax year, and you can even apply to backdate your claim.
To be eligible, you must be married or in a civil partnership; simply living together doesn’t count. One partner should be a non-taxpayer, earning under the £12,570 personal allowance between 6 April 2022 and 5 April 2023 or be unemployed. The other partner needs to be a basic 20% rate taxpayer earning less than £50,270.
Unfortunately, higher or additional-rate taxpayers are not eligible for this allowance.
Once the allowance has been applied for, it takes around 2 working days for HMRC to issue your new tax code to your employer or you if you are self-employed. Once your payroll has registered this new code, you’ll start seeing an increase in your take-home pay, and no need to reapply each year! Just alert your employer if you are no longer entitled to the allowance due to a change in circumstances.
For a more in-depth look at what you could be entitled to, a comprehensive FAQ and details on how to apply for your marriage allowance, head to the Claims Advisory Service marriage allowance 101 page.