Thousands of Britons are losing out on a chance to save hundreds of pounds in tax, according to HMRC.

0

Thousands of Britons are losing out on a chance to save hundreds of pounds in tax, according to HMRC.

Marriage Allowance provides additional tax relief to 1.8 million couples in the UK, according to HMRC. Couples can save hundreds of dollars on their income tax payments as a result of this, but many people are missing out.

Nearly 1.8 million married couples and those in civil partnerships are using Marriage Allowance to save up to £252 in income tax each year, according to HMRC. The government emphasized that married couples may have experienced a change in circumstances that now qualifies them for Marriage Allowance if they were not previously eligible.

“Summer has long been a popular season for weddings, and newly married couples or civil partners may be eligible for the tax savings,” HMRC added.

“Even if they’ve been married for a long time, a change in circumstances may make them suddenly eligible.”

If one partner earns less than the Personal Allowance threshold of £12,570 and the other is a basic rate taxpayer, married couples or those in civil partnerships can split their personal tax allowances.

Eligible claimants can give their partner 10% of their tax-free allowance, which amounts to £1,260 in the 2021/22 tax year.

Couples might save up to £252 in tax each year as a result of this.

Couples can also claim backdated tax credits for any of the preceding four tax years, potentially worth up to £1,220.

Marriage Allowance is free to apply for, according to HMRC, and GOV.UK is the quickest way for taxpayers to check their eligibility and file a claim to receive 100 percent of the relief they are entitled to.

“Marriage Allowance helps eligible couples share their Personal Allowances and reduce their tax by up to £252 a year,” said Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary.

“Nearly 1.8 million couples have already signed up for the service; it is free, quick, and simple to apply; just go to GOV.UK and type in ‘marriage allowance.’”

Marriage Allowance may now be available to married couples who have recently undergone a change in their circumstances.

One partner retiring while the other continues to work, a change in occupation owing to coronavirus, or one partner taking unpaid leave are all examples of these types of transitions.

These guidelines should be followed right now because there are a lot of them. “Brinkwire News in Condensed Form.”

Share.

Comments are closed.