Married Britons could get tax refund worth up to £252 per year

Marriage allowance: Man reveals he had money deducted

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This is a process known as Marriage Allowance, and it is offered by HM Revenue and Customs (HMRC). Under Marriage Allowance, a person can transfer £1,260 of their Personal Allowance to their husband, wife or civil partner.

It should reduce their tax by up to £252 within the tax year – from April 6 to April 5 of the next year.

However, not everyone is eligible for Marriage Allowance and the Government outlines strict rules on the matter.

Firstly, a couple must be married or in a civil partnership to claim, as cohabiting couples are not eligible. 

In order to benefit, one member of the couple must normally have an income below their Personal Allowance – typically £12,570.

The other member of the couple needs to be a basic rate taxpayer.

This usually means their income is between £12,571 and £50,270 before receiving Marriage Allowance.

Transferring some of a Personal Allowance to a husband, wife or civil partner could mean a person has to pay more tax.

However, they could still pay less as a couple, making the endeavour worthwhile. 

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If a person or their partner is currently receiving a pension, it will not impact their application for Marriage Allowance.

Similarly, expats can apply, as long as they get a Personal Allowance.

The system can be even more beneficial due to the fact people could be able to backdate their claim.

A backdated claim can include any tax year since April 5, 2018 as long as a person was eligible during the time.

The partner’s tax bill will be reduced depending on the Personal Allowance rate for the years the couple is backdating.

It is totally free to apply for Marriage Allowance and this should be done directly through HMRC.

This ensures people receive 100 percent of the tax relief to which they are entitled.

The Government website explains: “If both of you have no income other than your wages, then the person who earns the least should make the claim.

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“If either of you gets other income, such as dividends or savings, you may need to work out who should claim.”

Once a successful claim is made for Marriage Allowance, people should expect their tax code to change.

If a person is transferring the allowance, their tax code should end with ’N’.

However, if the person is receiving the allowance, they can expect their tax code to end with ‘M’.

Tax codes will also change for those who are employed, or receive a pension. 

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