Could you be Claiming the Marriage Allowance?

HMRC has warned that around one million couples are missing out at least £238 each because they've not claimed the marriage tax allowance.

It’s not very often that HMRC dish out free money so to speak, so we’re here to make sure than as many people as possible take advantage of this

What is the Marriage Allowance?

Everyone has a tax-free personal allowance of £11,850 and no tax is due on income up to this amount.

The marriage allowance lets you transfer part of your personal allowance to your partner, with the lower earner being able to transfer up to 10% of the value of the full personal allowance to their higher-earning partner

What’s more, you can backdate your claim to include any tax year since 5 April 2015 during which you were eligible for the allowance. A couple who claimed now for 2015-16, 2016-17 and 2017-18 stand to gain to the tune of £662, and the good news is that any money for previous tax years is likely to be paid in the form of a cheque – just in time for Christmas!!

HMRC will typically give the recipient partner their 2018/19 allowance either by changing their tax code or via the self-assessment tax system. The lower earner’s personal allowance will transfer automatically to their partner every year until one of them cancels the allowance or their circumstances change – for example, because of divorce or death.

Can I claim it?

This is the most important factor as only people with these specific circumstances will be able to apply:

• You're married or in a civil partnership (just living together doesn't count).
• One of you needs to be a non-taxpayer, which usually just means earning less than the £11,850 personal allowance (£11,500 for 2017/18, £11,000 for 2016/17, £10,600 for 2015/16).
• The other needs to be a basic 20% rate taxpayer (higher or additional-rate taxpayers aren't eligible for this allowance). This means you'd normally need to earn less than £46,350 (£45,000 for 2017/18, £43,000 for 2016/17 or if you live in Scotland, £42,385 for 2015/16).
• You both must have been born on or after 6 April 1935 (if not there's another tax perk called the Married Couples Allowance).

Plus, a rule that came into effect from Wednesday 29 November 2017 allows you to make a backdated claim even if your partner has died since April 2015 and all the other criteria above apply

How Do I Apply?

It takes around 10 minutes to apply for the Marriage Allowance online.

If you don’t have access to the internet you can claim by calling 0300 200 3300 - but be patient as they will try and push you online. Just say Marriage Allowance when asked what you are calling about and stick with it and eventually you'll get through to a real person!

To apply, you'll need details from your P60, bank account, National Insurance number, the three most recent payslips and your passport number to hand. This might seem like a lot of information, but the benefits certainly outweigh the time costs!

How can BDHC Help?

If we complete your Self-Assessment return, then rest assured, we will look to see if the Marriage Allowance is suitable for you or your partner.

If you’re unsure of whether the allowance will apply to you, then please just give us a call or drop us an email and we can help you with your options.