Of 4.2million eligible couples, three quarters of them are missing out on a free £220 this year. The Marriage Tax allowance allows couples to transfer £1,100 of their personal allowance from one person to the other. This works out as saving £220 off your annual tax bill. For this to work, you need to satisfy the following requirements:
- Be married or in a civil partnership
- One of you must be a non-tax payer (i.e. earn less than £11,000 this tax year)
- The other person needs to be a 20% basic rate tax payer (so you can’t earn more than £43,000 in the tax year)
- You both need to have been born on or after 6 April 1935.
To register for the Marriage Tax allowance, the non-tax payer person out of the couple needs to fill in the application form on the HMRC (HM Revenue & Customs) website. All you need is your National Insurance numbers and one out of a range of different acceptable forms of ID for the non-taxpayer. If there’s a problem doing it via the website, just call 0300 200 3300 and do it by phone.
This arrangement started last tax year so if you register this year, you can also get £212 from last year back. That makes it £432!!