What is Marriage Allowance?
Marriage allowance is a great way for married couples to save money on their taxes. By transferring £260 from the lower income earner to their partner (wife, husband or civil partnership), a marriage tax allowance can reduce your overall tax bill between £364 to £941.50 a year and put more money back in your pocket. For that, you need to earn less than £12,570 and less than your partner.
Who Qualifies for Marriage Tax Allowance?
If you are married or in a civil partnership, and at least one of you earns less than £12,570 per year, then a marriage tax allowance can be claimed. The higher earner needs to have an income between £12,571 and £50,270 for marriage allowance to be applicable.
How do I Claim a Marriage Allowance?
In order to claim a marriage allowance, you must first make a marriage allowance check on the government website. This will confirm whether you are eligible for marriage tax relief. If you are eligible, then you can complete the online application form with your National Insurance number and personal details. Once approved, the HMRC will transfer the marriage allowance directly to your partner. You can also precede your claim from April 2018.
Can I Claim a Marriage Tax Allowance If My Partner is Not Working?
Yes, you can still claim marriage allowance if you and your partner are both not working or one of you is not working. You must still meet the other criteria, such as income requirements, in order to be eligible for marriage tax relief. If you are not working you can transfer 10% of your personal allowance to your partner.
Can I Claim 2 Allowances If I am Married?
No, the marriage tax allowance applies only to one marriage or civil partnership at a time. You cannot claim two marriage allowances if you are married twice or in multiple civil partnerships. Unless you combine your income in a joint account. For more about this, check our Child Benefit Tax blog post.
What Documents Do I Need to Apply for Marriage Allowance?
You need to submit either 2 of the following;
- A payslip, showing the last 3 months of your income
- Your last P60
- Detailed credit claim
- UK passport
- Your last 2 self-assessment tax return
- Information from your mortgage, loan etc.
- Driving Licence
Marriage Allowance is a great way for married couples to save money on their taxes and put more money back in their pocket. To qualify for marriage tax relief, both partners need to meet certain income requirements. The marriage allowance check on the government website will determine if you are eligible. If so, then you can proceed in completing the online application form with your National Insurance number and personal details. After approval, HMRC will transfer the marriage allowance directly to your partner.