Accounting, Personal Finance, self-assessment, Taxation

“I do do do” to Marriage Allowance

If you are married or in a civil partnership, you and your partner may be eligible for the tax-free break known as marriage allowance, and if your claim is backdated, you may take home a lump sum of up to £900.

This tax year (2018/2019), the allowance allows the transfer of £1,190 from a low-earner’s personal allowance to their higher-earning partner. That’s a saving of up to £238. Next tax year, when the personal allowance goes up to £12,500, the transferable sum will be £1,250, saving £250 in tax.

To be eligible, the lower earner must:

  • be either married or in a civil partnership
  • either not be taxpayers or have an income below the personal allowance
  • have a partner who pays tax at the basic rate ie annual income must be between £11,851 and £46,350

To apply go to the HMRC’s website. Note that the lower earner is the applicant.

About Phoenix

Accountant | Tax Specialist | Mother | Entrepreneur | Blogger

Discussion

No comments yet.

Get in touch

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Follow PHOENIX DEBOLA on WordPress.com

Enter your email address to receive notifications of new posts by email.

Join 792 other followers

0044 780 370 4496
0044 207 059 2442
%d bloggers like this: