Married? - additional tax allowance
Since the marriage allowance was introduced by the old government nearly two years ago, only one in four couples have signed up for the tax break. Here at robinson+co we ensure that all allowances are fully utilised for our clients where appropriate.
Latest HMRC statistics show that around 1.3m couples across the UK have claimed the marriage allowance, which was first introduced in April 2015, but this is a fraction of the estimated 4.2m married and civil partner couples eligible for the tax break.
In a bid to boost take up, HMRC is now urging couples to give their finances a New Year makeover, pointing out that since the start of the new tax year in April couples can backdate their allowance and boost their payment up to £432.
Taxpayers can apply for the marriage allowance via an online form at any stage in the tax year, and still receive the full entitlement. It allows a spouse or civil partner who earns less than their personal allowance to transfer £1,100 of it to their partner – as long as their partner does not pay more than the basic rate of income tax. Couples have four years to claim their backdated allowance.
Please contact robinson+co’s specialist tax team on 01900 603623 for more information.