Have you ever wondered if there’s a simple way to ease your tax obligation as a married couple or civil partner in the UK? At Nordens, we understand that tax matters can often feel overwhelming. That’s why we’re here to talk about the Marriage Allowance – a tax benefit that could be a game-changer for your family’s finances. It’s not just about saving money; it’s about making the most of your joint financial journey.
In this article, we’ll break down what Marriage Allowance is, who’s eligible, and how it can make a difference in your life. Whether you’re setting up your first joint budget or looking for ways to optimise your existing financial plans, our aim is to provide clear, helpful guidance on this valuable tax relief. Let’s take a closer look together and see how you can benefit.
Understanding the Marriage Allowance
What is the Marriage Allowance?
Imagine being able to share not just your life but also your tax benefits with your partner. That’s exactly what the Marriage Allowance in the UK offers. It’s a little gesture from the government that allows the lower earner in a couple to transfer £1,260 of their Personal Allowance to their higher-earning partner.
This can lighten the tax load by up to £252 each year – a nice saving that could go towards a special dinner, a joint hobby, or just a little extra in your savings account.
Who Can Benefit?
Eligibility is straightforward. If you’re married or in a civil partnership, and one of you earns less than the Personal Allowance threshold of £12,570, while the other is in the basic tax rate bracket (earning between £12,571 and £50,270) you’re likely eligible. It’s about ensuring that as a couple, you’re making the most of your combined tax allowances.
Applying for the Allowance
Applying for Marriage Allowance is a simple process. The lower earner in the relationship needs to initiate the application. This can be done online, which is quick and user-friendly, or alternatively through Self-Assessment. For those with more complex income sources, a call to the Income Tax helpline can provide the necessary guidance.
Backdating Your Claim
One of the great features of Marriage Allowance is the ability to backdate your claim. If you’ve been eligible since 5 April 2019 but haven’t claimed yet, you can still apply for those previous years. This means potential tax savings aren’t lost just because you didn’t claim them in time.
Adjusting to Life Changes
Life is full of changes, and the Marriage Allowance can adapt with you. If your income or relationship status changes, you can easily cancel or adjust the allowance. It’s designed to fit your current circumstances, ensuring that you’re always getting the most appropriate tax benefit.
Your financial well-being, our priority.
If you’re considering applying for the Marriage Allowance or just want to learn more about how it can benefit you, we’re here to help. Our team offers clear, practical advice to ensure you’re making the most of your tax opportunities. Contact us for guidance and support tailored to your unique financial situation. Let’s work together to ensure you’re not missing out on any benefits you’re entitled to.