Are you and your spouse making the most of your tax allowances as a couple? If not, you could be missing out on significant savings. One often overlooked benefit is Marriage Allowance, a government scheme designed to help couples reduce their tax bill. In this blog post, we’ll explore what Marriage Allowance is, who is eligible, and how you can apply to take advantage of this valuable tax break.
What is Marriage Allowance?
Marriage Allowance allows you to transfer £1,260 of your Personal Allowance to your husband, wife, or civil partner. This can result in a tax reduction of up to £252 every tax year (from 6 April to 5 April the following year).
Who is Eligible?
To benefit from Marriage Allowance as a couple, you need to meet the following criteria:
- You must earn less than your partner.
- Your income must be £12,570 or less.
- Your partner’s income must be between £12,571 and £50,270 (£43,662 in Scotland).
How to Apply
Applying for Marriage Allowance is free and straightforward. You’ll need the following information:
- Your National Insurance number.
- Your partner’s National Insurance number.
If you’re eligible, you can backdate your claim to include any tax year since 5 April 2020. Even if your partner has passed away, you can still claim by contacting the Income Tax helpline.
Additional Considerations
- If at least one of you was born before 6 April 1935, you may be eligible for the Married Couple’s Allowance, which could provide even greater tax benefits.
- This service is also available in Welsh (Cymraeg).
Before You Apply
Before applying for Marriage Allowance, ensure you have the necessary documents to prove your identity. These may include:
- A valid UK passport or photocard driving licence.
- Payslips or tax credit claim details.
- Information from a Self Assessment tax return.
- Information from your credit record (if applicable).
Conclusion
Marriage Allowance is a valuable tax benefit that can help couples save money on their taxes each year. By transferring part of your Personal Allowance to your spouse or civil partner, you can maximise your tax benefits and reduce your overall tax bill. Don’t miss out on this opportunity to save – apply for Marriage Allowance today and start enjoying the benefits of reduced taxation as a couple.
Contact The Infinity Group today to learn more about how our CIS payroll services can help you unlock tax savings and streamline your payroll operations. Let us be your partner in payroll excellence, so you can focus on what matters most – growing your business and building a brighter future together.