Marriage Allowance warning as Britons have just weeks to claim £1,200 | Personal Finance | Finance
Married Britons are being urged to take action, as it is thought over £500million in tax breaks is going unclaimed. That is according to Old Mill, which has issued a clarion call to couples who are married or in a civil partnership.
These individuals could be missing out on more than £1,200 by failing to claim Marriage Allowance.
Marriage Allowance is a tax break worth up to £252 per year, specifically for married couples and those in a civil partnership.
This means couples who are living together but are not married or in a civil partnership will not be able to claim.
It allows a low earner in a couple to transfer up to £1,260 of their annual tax-free allowance to the higher earner.
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The higher earner must earn between £12,571 and £50,270 to qualify.
Couples in this situation could claim Marriage Allowance as a backdated claim for up to five years – currently back to April 6, 2018.
However, to benefit up to this date, action must be taken before April 5, 2023.
HMRC currently estimates some 4.2 million couples qualify, but only around 2.1 million are claiming at present.
This means more than two million couples could be missing out – the equivalent of more than £500million a year going unclaimed.
Rajeev Seewoorttun, tax manager at Old Mill, told Express.co.uk: “Since the Marriage Allowance was first introduced, there are an estimated two million couples who are entitled to claim but have not yet done so.
“It is possible to claim for all years back to 2018/19 where the entitlement conditions are met.
“The total tax saving for all years up until 2022/23 could be over £1,200.
“But, claims for the 2018/19 tax year need to be made by April 5, 2023.
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“We are urging couples who are eligible to take action now to ensure they don’t miss that deadline for that period – worth £238.”
To apply, Britons are encouraged to visit the GOV.UK website directly in submitting their claim.
The process is free, and this will ensure they get 100 percent of the tax break to which they are entitled.
The quickest way to apply for the allowance is online, but others can apply through Self Assessment or by writing to HMRC.
Changes to Personal Allowances are backdated to the start of the tax year if an application is successful.
If a successful claim for Marriage Allowance is made, Britons will see their tax code change.
A tax code will end with ‘M’ if a person is receiving the allowance.
However, it will end with ’N’ if the allowance is being transferred.
