How 700,000 married couples are missing out on a £900 tax break

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AROUND 700,000 married couples are missing out on a tax break that would give them a whopping £900 for free.

The marriage tax allowance is open to millions of couples across the UK, but many people have never heard of it and don’t know what it is.

Married couple
The marriage tax allowance is open to millions of married couples across the UK
Getty – Contributor

The tax perk was set up in April 2015 to encourage more people to tie the knot.

It applies to couples where one of you is a non-taxpayer (earning less than £11,500) and the other is a basic-rate tax pay, so earning less than £45,000 a year.

It’s currently available to 4.2 million couples across the UK, but only 3.5 million couples have applied so far, HMRC told The Sun.

How does the marriage tax allowance work?

The system allows couples to transfer £1,190 of their personal allowance (the amount you can earn tax-free each tax year) between them in order to reduce their yearly tax bill.

When the perk was first introduced in 2015, it was worth £212 and the following tax year it was worth £220. For the 2017-2018 year, the allowance was worth £230.

For the current tax year (until April 5), it’s worth £238. But you can also claim the previous years’ allowances retrospectively, which means you can get up to £900 in total.

The personal tax allowance is increasing to £12,500 in April this year, which means eligible couples then will be able to transfer up to £1,250 from the lower income earner – reducing their tax by up to £250 a year.

Who can claim Marriage Allowance?

TO be able to claim your tax break you needs to tick all of these boxes:

  • You’re married or in a civil partnership
  • Your income is £11,500 or less. This includes people who don’t work
  • Your partner’s income is between £11,501 and £45,000 (or £43,000 if you’re in Scotland)

You can’t claim it if

  • You and your partner live together but aren’t married
  • You were born before April 6, 1935.

For more information visit GOV.UK

How do I apply?

You can only apply if you are the non-taxpayer – or lower earner – in the relationship.

You need to fill out the form on the HMRC website and you’ll need your national insurance numbers and a form of ID for the non-taxpayer.

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

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


Thousands of British parents could be missing out on a tax break worth as much as £2,000 a year, it has emerged.

Over 200,000 parents could also be missing out on up to £85,00 a year by wrongly claiming child benefit.

Meanwhile, Brits will have cheaper holidays in the Canaries thanks to new Brexit tax break.

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