HMRC issues alert as millions of couples could save £1,200 – are you eligible?

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Marriage allowance: Man reveals he had money deducted

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Marriage Allowance allows married couples or those in civil partnerships to share their personal tax allowances. If one partner earns an income under their Personal Allowance threshold of £12,570, and the other is a basic rate taxpayer it could save them £1,200 in tax.

It means that a couple can reduce their tax payment by up to £252, but as they can also backdate it four years, they should be able to save £1,220.

Angela MacDonald, HMRC’s deputy chief executive said: “Couples could be sitting on a tax relief worth up to £1,220 that could provide vital financial support at a time they need it most.

“To find out if you are eligible and how to apply, search ‘Marriage Allowance’ on gov.uk.”

More than two million couples have applied for the tax relief since it was launched in 2015 but there could be thousands more who are eligible.

Married couples may have experienced a change in their circumstances which could now mean they are eligible for Marriage Allowance.

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Britons could now be eligible for Marriage Allowance if:

They have recently married or entered a civil partnership
One partner has retired and the other remains working
Experienced a change in employment due to coronavirus
Had their working hours reduced which means their earnings now fall below their Personal Allowance
Have taken unpaid leave or a career break, or
One partner is studying or in education and not earning above their Personal Allowance

To qualify, one person needs to be a non-taxpayer while the other person will be paying the basic 20 percent rate of tax.

Couples where one person is earning £12,570 or less, while the other takes home between £12,571 and £50,270 should be eligible.

It’s also only available to couples born on or after April 6, 1935.

Britons only need to apply once as Marriage Allowance claims are automatically renewed every year.

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However, couples should notify HMRC if their circumstances change.

If a spouse or civil partner has died since April 5, 2017, the surviving person can still claim.

They can contact the Income Tax helpline on 0300 200 3300.

Alternatively they can type in ‘marriage allowance’’ on GOV.UK to find out more.

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