Anyone born after 1935 and married can claim £1,260 HMRC boost

Anyone born after 1935 and married can claim £1,260 HMRC boost Martin Lewis says 2.1 million people eligible don't claim it - and it can be backdated 4 years Married couples can take advantage of a tax perk - which could see them get a lump sum of £1,260. Experts like personal finance guru Martin Lewis have advocated people should take advantage of the break, adding 2.1 million who are eligible fail to claim it. The money-saving expert has explained how couples can secure valuable financial support when one partner isn’t working. Organisations such as the RNIB have also advocated people taking advantage - and it’s available to anoyne who is married or in a civil partnership and born after 1935. RNIB said: “Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner if they earn more than you. This reduces their tax by up to £252 in the tax year (6 April to 5 April the next year). To benefit as a couple, you (as the lower earner) must have an income of £12,570 or less. Your partner must be a basic rate taxpayer. “You can backdate your claim to include any tax year since 6 April 2020 that you were eligible for Marriage Allowance.” Mr Lewis previously outlined how the scheme essentially delivers a £1,260 tax reduction for married couples, pointing out it’s available ‘provided one of you is aged under 90’ — those born after 5 April 1935. Around 2.1 million eligible individuals are missing out on claiming this money, and those who haven’t previously made an application could receive £1,260 as a lump sum by backdating their claim for the previous four years plus the current year. The arrangement permits one partner who doesn’t pay tax to transfer the unused element of their personal allowance to their spouse. Mr Lewis clarified: “Imagine we have a couple here. The crucial part of this. One of you needs to be a non-taxpayer, so you are not earning your full personal allowance you can earn before you start paying tax on it.” Anyone not liable for income tax qualifies as a non-taxpayer for this relief. The receiving partner must not pay more than the basic 20 per cent tax rate, reports the Express. He added: “Clearly you have to be married or civil partners. Then what happens is this, each of you have your £12,570 personal allowance. That’s the amount you can earn that you don’t pay tax on each year. “So the non-taxpayer can apply to Gov.uk to move 10% of their tax-free allowance across to the basic rate taxpayer.” He clarified that this means the non-taxpayer is left with an allowance of £11,310, while the taxpayer benefits from a combined allowance of £13,830. “Now that 10% extra tax-free allowance they have, remember they would have paid tax on it at 20%, so the gain there is £252 a year, and that’s what moving across works, and in virtually every circumstance, even if the person here earned a little bit above that threshold where they might pay a little bit of tax, but as long as the person on this side is earning over £13,830, you’re always going to be net up if there’s a non-taxpayer and a taxpayer.” Mr Lewis cautioned that a fast-approaching deadline looms, as it applies to a particular tax year — with the current one drawing to a close on April 5. Those who have yet to claim the relief could be in line for a considerable lump sum, he noted: “The tax year ends on the 5th of April, you can claim back up to 4 tax years as long as you are eligible, which means A total gain of £1,258. “The way it works for the current year your tax code is changed, for past years they send you a check or they send you a bank transfer. So the marriage tax allowance is absolutely crucial to do.” Martin explained: “There are 2.1 million eligible couples who are not claiming this, who should be claiming this and could gain.” - You can backdate your claim to include any tax year since 6 April 2020 that you were eligible for Marriage Allowance. - To claim, you and your partner must have been born on or after 6 April 1935 and neither of you pay tax at the higher or additional rate. - If you or your partner were born before 6 April 1935, you might benefit more as a couple by applying for Married Couple's Allowance instead. - If your partner has passed away since 5 April 2020, you can still claim. Example If you earn £10,000 a year, and your Personal Allowance in 2024-25 is £12,570 and your partner also has a Personal Allowance of £12,570 and earns £16,000 a year. They will usually pay 20 per cent income tax on everything they earn over £12,570. Transferring £1,260 of your Personal Allowance to your partner will reduce their tax by £252 in the 2024-25 tax year. You can apply online at gov.uk. Applications must be made by the person with the lower income and you'll need your and your partner's National Insurance numbers.