So, perhaps not a reason to pop the question, but if you are married, and are eligible you should definitely check whether you have been claiming any marriage allowance available to you.
What are the tax benefits for married couples in 2019/20?
Did you know that marriage allowance for married couples and civil partners allows an individual, who earns less than the basic rate of income tax, to transfer part of their personal allowance of up to 10% (which in 2019/20 equates to £1,250) to their partner that earns more than them.
OK, so maybe not a good enough reason to get married, but there are still more than one million people not claiming marriage allowance, despite it having been recommended by HMRC.
Indeed, HMRC estimate that of all eligible couples, one in four have not made a claim. In order to be eligible for the allowance, the transferring partner’s income must not exceed £12,500 and the higher earner must not be a higher rate taxpayer.
How much can I save?
Making this claim increases the higher earner’s personal allowance by the amount transferred. The tax saving for the higher earning couple will therefore be 20% of the amount transferred, so a maximum of £250 for 2019/20.
It may not seem like a huge amount, but remember that the claim can be backdated to 2015/16, which means that the total claim if you haven’t made this claim previously could be worth up to almost £900.
Is there a deadline?
Any claim will need to be made by 5 April 2020 or the allowance for 2016/17 will be lost for good.
As always, if you would like more information regarding Marriage Allowance, or any other aspect of your personal tax position, please do not hesitate to contact us via the website or by email on askus@in-accountancy.co.uk. Or of course, you can give us a call on 0161 4569666 We would love to hear from you!
