Marriage Allowance enables one partner in a married couple or civil partnership to transfer part of their tax-free allowance to the other partner.
The marriage allowance for 19/20 is £1,250, generating a maximum tax saving of £250. People can make a claim now for 19/20, and make backdated claims for 15/16, 16/17, 17/18 and 19/20.
Marriage allowance can be claimed online at: https://www.gov.uk/apply-marriage-allowance or by calling 0300 200 3300. You will need the NI number for yourself and your spouse.
Points to note:
- To benefit as a couple, you need to earn less than your partner and have an income of £12,500 or less. You partner’s income must be between £12,500 and £50,000.
- If the claim is made the full amount is transferred – you cannot choose to transfer part of it.
- The claim is made by the transferor.
- Where the partners are within PAYE the transfer is usually occurs by adjusting the partners’ tax codes. If the recipient partner is self employed, the relief will be given via self-assessment.
If you need further guidance on this affects you, please get in touch.
JLA Accounting Limited takes every care in preparing material to ensure that the content is accurate and up to date. However, no responsibility for loss for anyone acting from or refraining from acting as a result of this information can be accepted by JLA Accounting Limited.
Leave a Reply