Martin Lewis ‘urgent’ warning as millions of Britons could lose out on £1,240 tax break | Personal Finance | Finance
Martin Lewis has called on couples to check if they can claim up to £12,42 in tax relief with 2.1 million Britons eligible for the Marriage Allowance. People can backdate their claim up to four years ago, to 2018, but this opportunity will end with the new tax year, that start next week on April 6.
Mr Lewis issued the “urgent” warning on his BBC podcast, telling listeners they could “lose big money” if they miss the deadline.
The Marriage Allowance lets a person who earns less than the threshold for paying tax on their income, which is currently £12,570, transfer up to £1,260 of their Personal Allowance to their partner, if they earn above the threshold.
This reduces the amount of tax the higher earner pays.
Couples may be able to benefit from the Marriage Allowance if they meet certain criteria.
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“Once you claim, you’re eligible year after year, as long as your eligibility doesn’t change. It’s an absolute no brainer for almost everyone.”
Angela MacDonald, HMRC’s deputy chief executive and second permanent secretary, said the Government wants every eligible couple to get the support.
She said: “Couples whose circumstances have changed – perhaps one of them has stopped working or taken a lower paid job – may not realise they are entitled to claim.
“It’s easy to find out what you may be due – search ‘Marriage Allowance calculator’ on gov.uk to get started.
“By applying on gov.uk, rather than through a third party, you get to keep 100 percent of the tax relief due.”
Other groups may offer to help someone lodge a Marriage Allowance claim but they may charge a fee or request part of the money.
Couples should be aware they will no longer be entitled to the allowance if their relationship ends in divorce or dissolution of a civil partnership, or a legal separation.
If a relationship ends, either individual can cancel the Marriage Allowance claim, but if the cancellation is for another reason, the person who made the claim has to cancel it.
The Martin Lewis Podcast is on BBC Sounds on Wednesdays.
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