- Shepherd Partnership
HMRC have recently issued a reminder to taxpayers to check if they are eligible for the Marriage Allowance. This is for married couples and those in civil partnerships who could potentially reduce their combined Income Tax by up to £252 a year.
The Marriage Allowance allows married couples and those in civil partnerships to transfer 10% of their Personal (tax-free) Allowance to their partner if one partner earns an income under their Personal Allowance threshold (£12,570 for the current tax year) and the other is a basic rate taxpayer.
The allowance is rounded to £1,260 in 2021–22 which means couples can reduce the tax they pay this tax year by up to £252. Claims can be backdated four tax years, which in total could be worth up to £1,220.
If you think you might qualify and are yet to make a claim, please get in touch.