Have You Claimed Your Marriage Allowance Tax Break?

​​​If we could have up to £432 for filling out a simple form, we’d all do it wouldn’t we?  Well, apparently not.  The marriage allowance is a tax break for married couples who meet the criteria but this has had a very poor take up.  Some reports suggest that less than 1 in 10 eligible couples have taken advantage.

So why has the government introduced the marriage allowance and why have take up rates been so low? The Government wanted to help families – especially those with one primary ‘bread-winner’ and felt the current income tax treatment was unfair on those with one main income earner compared to families who had two lower income earners. The marriage allowance was their way to make this fairer and was introduced in 2014.

Since this time, uptake has been extremely poor.  This is primality due to a lack of information and understanding of this tax break as well as people simply not getting round to acting.  This apathy and lack of understanding is costing British couples millions of pounds each year.

I recently met with Mr & Mrs E.  Mrs E does not work and has no income.  Mr E works in IT and earns around £30,000 per year.  Taking off his personal allowance of £11,000, leaves £19,000 of taxable income.  Tax at basic of 20% leaves total net income of £26,200 (£11,000 + £15,200).

Mr & Mrs E are eligible for the marriage allowance.  Mrs E can transfer 10% (£1,100) of her unused Personal Allowance to Mr E.  This would result in net income for Mr E of £26,420 (£12,100 + £14,320).  This is £220 more take home pay (£26,440 – £26,220).  Fill out the form and it’s done.

It could be even better than this as you claim back for the previous year too if you are eligible.  This could save a further £212. A total saving of £432. You will receive a cheque through your letterbox from HMRC for the full backdated amount as well as your reduced tax this year.

What’s more is that the marriage allowance can be backdated for up to 4 years into total, meaning that as the years pass, you could end up being able to claim over £800 in one fell swoop.

Sounds good?  You can apply if:

• you’re married or in a civil partnership
• you don’t earn anything or your income is under £11,000
• your partner’s income is between £11,001 and £43,000

You can still apply for marriage allowance if you or your partner:

• are currently receiving a pension
• live abroad – as long as you get a ‘personal allowance’

Just remember – It’s the non-taxpayer who must apply to transfer their allowance. If the taxpayer applies you’re doing it the wrong way round and it won’t work.

If this describes you why not apply here https://www.gov.uk/apply-marriage-allowance or call 0300 200 3300. Alternatively, get in touch with us at NorthStar to talk it through. We can help you work out which benefits you should apply for and how to get the tax breaks you are entitled to.

It’s easy to put things like this off and too many people do just this. It’s so simply and quick to apply for the marriage allowance so why not do it today?