Say I Do….

Mar 04, 2019

…to the marriage allowance. Valentine’s Day might be over but HMRC are encouraging married couples and those in a civil partnership to sign up for Marriage Allowance if they haven’t already done so.

The marriage allowance lets lower income individuals transfer £1,190 of their Personal Allowance to their husband, wife or civil partner – if their income is higher. This could reduce their tax by up to £238 for 2018/19 tax year.

The following conditions must be met to benefit from the marriage allowance:

  • you’re married or in a civil partnership;
  • you do not pay income tax or your income is below your Personal Allowance (£11,850 in 2018/19); and
  • your partner pays income tax at the basic rate, which in 2018/19 means their income is between £11,851 and £46,350

The personal tax allowance is increasing to £12,500 in 2019/20. The increase in non-taxable earnings means eligible couples will be able to transfer up to £1,250 from the lower income to the higher income earner – reducing their tax by up to £250 a year.

Couples can find out more and apply for Marriage Allowance at GOV.UK. Couples are guaranteed 100% of their eligible entitlement, if they apply directly through HMRC. There is no need to reapply for Marriage Allowance every year because it is automatically renewed. However, couples should notify HMRC if their circumstances change and they want to cancel it.