At Soldi Partners, we often meet clients who are unaware of simple yet valuable tax reliefs they may be entitled to. One of the most commonly overlooked benefits is the Marriage Allowance – a tax perk that could save eligible couples up to £252 a year. Here we explain what the Marriage Allowance is, who can claim it, and how you can benefit.
What Is the Marriage Allowance?
The Marriage Allowance is a tax benefit offered by HMRC that allows a non-taxpayer to transfer a portion of their personal allowance (the amount you can earn tax-free each year) to their spouse or civil partner – if the recipient is a basic rate taxpayer.
For the 2024/25 tax year:
The personal allowance is £12,570.
The amount transferable is 10% of the personal allowance, which is £1,260.
This could reduce the recipient’s tax bill by up to £252 a year.
Who Is Eligible?
To qualify:
You must be married or in a civil partnership.
One partner must earn less than £12,570 (or not be working).
The other partner must be a basic rate taxpayer, earning between £12,571 and £50,270 (or up to £43,662 in Scotland).
Note: You cannot claim Marriage Allowance if you both pay higher-rate or additional-rate tax.
Backdated Claims – A Hidden Bonus
Many couples don’t realise you can backdate your claim by up to four years, provided you met the criteria during those years. This means you could receive a lump sum of over £1,000 if you haven’t claimed before.
How to Apply
Applying is straightforward:
Visit the official HMRC Marriage Allowance website.
The lower earner must initiate the claim.
HMRC will adjust the recipient’s tax code, reducing the amount of tax they pay.
As your trusted Kent accountants, we can help determine if you’re eligible and assist with the application process to ensure no money is left on the table.
Real-World Example
Let’s say Sarah works part-time in Ashford and earns £10,000 a year. Her husband, James, earns £35,000 working for a construction firm in Maidstone. Sarah isn’t using her full personal allowance, so she can transfer £1,260 to James. This reduces James’s tax bill by £252 – every year they remain eligible.
Final Thoughts
In uncertain economic times, every little bit helps. The Marriage Allowance is a simple, often-overlooked way for couples to ease their tax burden. If you think you might qualify – or just want a second opinion – we’re here to help.
Contact us today for a no-obligation chat and find out how we can support your financial wellbeing.
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