Could the Marriage Allowance Benefit You?
- Paul Edwards
- 4 days ago
- 2 min read
Love is in the air, and so could be some extra cash in your bank account! If you're married or in a civil partnership, you might be eligible for a handy little perk called the Marriage Allowance. It's a way for lower-earning spouses to transfer some of their unused personal allowance to their higher-earning partner, potentially reducing their overall tax bill.
Sounds interesting, right? Let's dive into the details and see if you and your loved one could be benefiting from this.
The Basics: How Does The Marriage Allowance Work?
The Marriage Allowance allows one partner in a marriage or civil partnership to transfer £1,260 of their personal allowance to their partner. For the current tax year (2024/2025), the standard personal allowance is £12,570.
Here's the key condition:
One partner must earn below the personal allowance (£12,570). This usually means they are a non-taxpayer or a basic rate taxpayer with income below this threshold.
The other partner must be a basic rate taxpayer. This means their income is between the personal allowance and the basic rate tax threshold (currently £37,700 for the 2024/2025 tax year).
What does this mean in real terms?
If you're eligible, the lower-earning partner can transfer £1,260 of their personal allowance. This reduces the higher-earning partner's taxable income by the same amount. For a basic rate taxpayer (who pays 20% income tax), this could mean a tax saving of up to £252 per tax year (£1,260 x 20%).
Who is eligible? Let's break it down:
You can claim the Marriage Allowance if all the following apply:
You are married or in a civil partnership.
One of you doesn't pay income tax or your income is below the personal allowance (currently £12,570).
Your partner pays income tax at the basic rate (their income is between £12,571 and £50,270).
You were both born on or after 6 April 1935.
How to Claim Marriage Allowance:
The good news is that claiming the Marriage Allowance is relatively straightforward. The lower-earning partner usually needs to make the claim online through the GOV.UK website. Once approved, the allowance will typically be applied to the higher-earning partner's tax code.
Important Considerations:
Backdating Claims: You can actually backdate your claim for up to four previous tax years if you were eligible during that time. This could mean a significant lump sum in tax refunds!
Changes in Circumstances: If your income levels change and you no longer meet the eligibility criteria, it's important to inform HMRC.
Not for Higher Rate Taxpayers: If the higher-earning partner pays income tax at the higher or additional rate, you won't be eligible for the Marriage Allowance.
Don't Miss Out on Potential Savings!
With the cost of living increasing, every little bit helps. The Marriage Allowance is a simple way for eligible married couples and civil partners to potentially reduce their tax burden. It's definitely worth a few minutes to check if you and your partner could be benefiting.
Take Action Today:
Head over to the official GOV.UK website to check your eligibility and make a claim. You might be pleasantly surprised by the extra savings you could unlock!
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