HMRC: Britons could slash tax bill by ‘up to £1,220’ but thousands are missing out | Personal Finance | Finance
Tax relief is likely to be welcomed by many people, who can keep more money in their pocket. HMRC will help millions of people with their taxes each year, but the Revenue is perhaps best known for taking tax.
However, what many may be unaware of is that HMRC could also help Britons to get a valuable tax break.
It can be secured by those who are married in certain circumstances, and could be particularly valuable.
Known as Marriage Allowance, the financial support could help couples where they need it most, especially amid the cost of living crisis.
Marriage Allowance allows Britons to transfer £1,260 of their Personal Allowance to their husband, wife or civil partner.
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Some individuals will be excluded from receiving this tax break, it is worth noting.
This is the case for those who are cohabiting, but not married or in a civil partnership.
Individuals can also backdate their claim for Marriage Allowance to include any tax year since April 5, 2018 that they were eligible.
This will mean their partner’s tax bill will be reduced depending on the Personal Allowance rate for the years they are backdating.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, previously commented on the matter.
She said: “Couples could be sitting on a tax relief worth up to £1,220 that could provide vital financial support at a time they need it most.
“To find out if you are eligible and how to apply search ‘Marriage Allowance’ on GOV.UK.
“More than two million couples have applied for the tax relief since it was launched in 2015.
“But there could be thousands more who are eligible to claim.”
It is free to apply for Marriage Allowance and this can be done through the Government’s website to ensure Britons get 100 percent of the money due to them.
If both members of a married or civilly partnered couple have no income other than wages, then the person who earns the least should make the claim.
Other couples may get additional income such as dividends or savings.
In this case, the Government says couples may need to work out who should claim.
For guidance, couples can call the Income Tax helpline if they are unsure.
