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


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Phoenix Debola is licensed and regulated by the Institute of Financial Accountants (UK), the Institute of Public Accountants (Australia) and FA and the Association of Accounting Technicians (AAT) to provide Accountancy, Tax and related services. IFA/IPA and AAT are recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and Phoenix Debola Accountancy Practice is supervised by the AAT in this respect.

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