Blog

Marriage Allowance are you eligible?

A recent conservative policy is being introduced to the tax system from 6 April 2015, known as the Married Couples allowance. Married couples and civil partnerships can now register and save up to £212 per year.

This new allowance was introduced to recognise the pledge of marriage and civil partnership within the tax system. David Cameron confirmed the allowance as, “It’s about valuing commitment”.

Who is eligible?

Married couples or couples in a civil partnership, this equates to more than 4 million married couples and 15,000 couples in civil partnerships.

Both members of the couple have to have been born on or after 6 April 1935 (if one partner was born before 1935, a married couple’s allowance can be claimed for instead).

What is the allowance?

A spouse or civil partner who doesn’t pay tax, or pays the basic rate of income tax, can transfer up to £1,060 of their personal tax-free allowance to a spouse or civil partner – as long as the receiver of the transfer is a basic rate tax payer.

The individual personal allowance before paying tax, will rise to £10,600 in April 2015, this includes earnings from work, savings and pensions. From April 2015, the basic rate of tax is 20% on income between £10,601 and £42,385 a year.

£212 can be saved within the first year.

Are you entitled?

You can register your interest at gov.uk/marriage-allowance.  HMRC will respond with a formal claim procedure.

How will you receive this allowance?

HMRC will change the PAYE tax code of the spouse or partner who is receiving the allowance, signifying their larger personal allowance.

If you fit into this catchment then don’t lose out on your entitlement, register your interest at gov.uk/marriage-allowance today. To coin a familiar saying, “Every little helps”.

If this has been of interest and you would like more information on how we can help you, please contact our office on 01253 899989.

 

Comments are closed.


×


Thank You



Your Information has been submitted successfully.