How 2.4 million married couples can claim up to £1,220

AN estimated 2.4 million married couples are missing out on up to £1,220 in tax relief, HMRC has said.

The marriage allowance allows couples to save up to £252 in income tax per year.

The tax relief lets married couples and those in civil partnerships share their personal tax allowances if one partner earns an income under their personal allowance.

To qualify, one of the couple must be a basic rate taxpayer and the other a non-tax-payer. 

The non-taxpayer must have earned an income below their Personal Allowance threshold of £12,570

Couples can backdate their claims for any of the previous four tax years, which means they could be due up to £1,220.

Nearly 1.8 million married couples and civil partnerships are already making use of the extra tax relief.

However, HMRC estimates that 4.2 million couples are eligible for the scheme.

This means that 2.4 million married couples have yet to claim the tax back.

Personal finance analyst Sarah Coles urged Brits to make use of the tax relief ahead of looming tax increases.

 “At the moment there’s plenty of speculation that the government is busy dreaming up more ways to make us pay more tax, so it’s worth taking advantage of the tax breaks on offer too”, the Hargreaves and Lansdown analyst said.

“The thought of applying for a tax allowance can be off-putting, but it’s not a particularly involved process.

"You can do it online, as long as you have a National Insurance number and proof of your identity.

"And your efforts could save you a decent chunk of cash.”

The good news comes as thousands of Brits opt for a summer wedding following months of changing lockdown restrictions.

August has traditionally been the most popular month for weddings, and 20201 was no different.

Wedding magazine Hitch reported that August 21 will be the most popular day of 2021 to get married, with 16,350 couples tying the knot.

How do I apply?

Only the lower payer or non-taxpayer can apply.

The easiest way is to fill out a form on the Gov.uk website, and you’ll need your national insurance numbers and a form of ID for the non-taxpayer.

Alternatively, you can apply through self-assessment or by writing to HMRC.

Whatever way you apply, any backdated money owed to you will be calculated automatically and sent to you as a cheque.

If you need any assistance applying, you can call the HMRC helpline on 03000 200 3300.

Here's how much the relief is worth for current and past four tax years:

  • 2021/22 – £252
  • 2020/21 – £250
  • 2019/20 – £250
  • 2018/19 – £238
  • 2017/18 – £230

It comes as Brits on benefits can look forward to receiving their money earlier than usual this August bank holiday.

Meanwhile, five big changes to personal finances arrived last week, including tax credits, mortgage holidays, and furlough.

Parents have been warned to keep paying child benefit tax despite a landmark ruling that some people could be due refunds.

 

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