As the cost of living continues to rise<\/strong> and tax thresholds remain frozen until at least 2028<\/strong>, more households are facing higher tax bills than ever before<\/strong>. However, HMRC has a tax break<\/strong> that many eligible couples are missing out on<\/strong>\u2014the Marriage Allowance<\/strong>. This scheme allows couples to transfer part of their tax-free Personal Allowance<\/strong>, increasing their household\u2019s total tax-free income<\/strong> and reducing their overall tax burden<\/strong>.<\/p>\n\n\n\n
What makes the Marriage Allowance particularly valuable<\/strong> is the ability to backdate claims for up to four years<\/strong>, meaning eligible couples could receive an instant rebate of up to \u00a31,242<\/strong>. Despite these significant financial benefits<\/strong>, thousands of couples remain unaware of the scheme<\/strong>, leaving millions of pounds unclaimed<\/strong>. With tax burdens expected to rise<\/strong> in the coming years, now is the perfect time for couples to check their eligibility and apply<\/strong> before they miss out.<\/p>\n\n\n\n
The Personal Allowance<\/strong> is the amount of income a person can earn before paying tax<\/strong>, currently set at \u00a312,570 per year<\/strong>. However, the Marriage Allowance<\/strong> allows a lower-earning partner to transfer \u00a31,260 of their Personal Allowance<\/strong> to their spouse or civil partner, effectively reducing the higher earner\u2019s taxable income<\/strong>.<\/p>\n\n\n\n
Explaining how the scheme works, the government states<\/strong>:
“Marriage Allowance lets you transfer \u00a31,260 of your Personal Allowance to your husband, wife, or civil partner. This reduces their tax by up to \u00a3252 in the tax year (6 April to 5 April the next year).”<\/em><\/p>\n\n\n\n
This means that couples who qualify for the scheme<\/strong> could save hundreds of pounds annually<\/strong> while also benefiting from a backdated lump sum payment<\/strong>.<\/p>\n\n\n\n
HMRC provided an example of how the tax break works<\/strong> in practice:
*”When you claim Marriage Allowance, you transfer \u00a31,260 of your Personal Allowance to your partner. Your Personal Allowance becomes \u00a311,310, and your partner gets a \u2018tax credit\u2019 on \u00a31,260 of their taxable income.<\/p>\n\n\n\n
This means you will now pay tax on \u00a3190, but your partner will only pay tax on \u00a36,170. As a couple, you benefit, as you are only paying Income Tax<\/a> on \u00a36,360 rather than \u00a37,430, which saves you \u00a3214 in tax.”*<\/p>\n\n\n\n
Not all couples are eligible for the Marriage Allowance<\/strong>, but those who meet the following criteria<\/strong> can claim the tax relief<\/strong>:<\/p>\n\n\n\n
For example, if one spouse stays at home<\/strong> while the other earns \u00a330,000 per year<\/strong>, the lower-earning spouse can transfer \u00a31,260 of their Personal Allowance<\/strong>, saving the working partner \u00a3252 in taxes annually<\/strong>. Over time, this can add up to thousands of pounds<\/strong> in savings.<\/p>\n\n\n\n
Even couples who have never applied before<\/strong> can still claim the allowance for previous tax years<\/strong>, meaning they could receive a lump sum rebate<\/strong> from HMRC.<\/p>\n\n\n\n
This brings the total possible rebate to \u00a31,242<\/strong>, which will be paid directly to the couple in a tax refund from HMRC<\/strong>.<\/p>\n\n\n\n
When combined with the standard \u00a312,570 Personal Allowance<\/strong>, the total tax-free income<\/a><\/strong> for the household can rise to \u00a314,064<\/strong>\u2014a valuable financial boost for many families.<\/p>\n\n\n\n
Claiming the Marriage Allowance<\/strong> is quick, free, and easy<\/strong>. Couples can apply:<\/p>\n\n\n\n
Once approved, the allowance automatically renews each year<\/strong>, meaning couples don\u2019t have to reapply<\/strong> unless their circumstances change.<\/p>\n\n\n\n
HMRC processes backdated claims within 8-12 weeks<\/strong>, and any rebates will be paid directly into the couple\u2019s bank account<\/strong>.<\/p>\n\n\n\n
With tax thresholds frozen until 2028<\/strong> and the cost of living continuing to rise, UK households need to maximize every available tax break<\/strong>. The Marriage Allowance<\/strong> provides a simple way<\/strong> for couples to reduce their tax bill<\/strong> while unlocking thousands of pounds in savings<\/strong>.<\/p>\n\n\n\n
For couples who haven\u2019t claimed before, the ability to backdate four years<\/strong> means they could receive an instant lump sum refund<\/strong>, easing financial strain and providing extra funds for household expenses<\/strong>.<\/p>\n\n\n\n
Since many taxpayers are unaware of this benefit<\/strong>, thousands of eligible couples have yet to claim what they are owed<\/strong>. Checking eligibility takes minutes<\/strong>, and for those who qualify, applying could mean a significant financial boost<\/strong> without extra effort.<\/p>\n\n\n\n
With millions in unclaimed tax relief<\/strong> still available, now is the perfect time for married couples to take advantage of this hidden tax-saving opportunity<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"
Millions of UK couples could legally increase their tax-free earnings to \u00a314,064 per year and claim up to \u00a31,242 in backdated tax relief, thanks to an HMRC-approved scheme. The Marriage Allowance allows eligible partners to transfer part of their Personal Allowance, reducing their tax bill while unlocking extra household income. But with many people unaware of this benefit, thousands of pounds remain unclaimed each year. Who qualifies, and how can you apply?<\/p>\n","protected":false},"author":4,"featured_media":102555,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-103375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/103375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=103375"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/103375\/revisions"}],"predecessor-version":[{"id":103376,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/103375\/revisions\/103376"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/102555"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=103375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=103375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=103375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}