Frequently Asked Questions on Marriage Tax Allowance

Marriage tax allowance is a scheme of government specially created for the married couples for offering them income tax relief. By using this tax perk, the low earning partner can transfer an amount of £1,250 of personal allowance to another partner.

Frequently Asked Questions on marriage tax allowance:

Regarding marriage tax allowance there can be many confusions and questions in your mind. Below are few common FAQ we will e discussing here, where you might get your question solved:

What are the eligibility criteria for the couples for marriage allowance?

To become eligible to avail marriage tax allowance a couple should have the below eligibilities -

• Need to be married couples or in a civil relationship
• One of you should be a non-taxpayer and others should have a taxable income
• You need to pay the income tax, or your income should be less than your allowance (generally an amount of £12,500)
• The other should have an earning between £12,501 and £50,000 (anyone who pays the basic 20% tax rate)
• Both of you should have a date of birth after 6 April 1935

Can it be backdated?

Yes, it can be backdated up to 4 years

Is marriage tax allowance taxable?

No, marriage tax allowance is designed for the married couples for paying less tax where one partner is not using all or any of their allowance.

How much amount you can get?

For the current tax year, 2020/21 the marriage tax allowance is worth up to £250

Moreover, with the present year’s allowance, you could backdate your claim by up to 4 tax years (presently 2016/17, 2017/18, 2018/19 and 2019/20). The amounts for each year are worth up to:

• 2020/21 — £250

• 2019/20 — £250

• 2018/19 — £238

• 2017/18 — £230

• 2016/17 — £220

This indicates that if you claim for this tax year and backdate the maximum four years, you can get up to £1,188.

How to cancel a marriage tax allowance?

You need to contact HMRC once you want to cancel marriage allowance. Cancelling can be done online or giving a call to HMRC at 0300 200 3300

The marriage allowance arrangement will inevitably be cancelled once the marriage ends either by divorce or death.

I’m not working, so am I eligible to claim?

Yes, you can claim if you’re not working you may transfer 10% of your allowance to your partner — but they should be earning, and be a basic rate taxpayer.

Do higher rate taxpayers eligible for a marriage tax allowance?

No, basic taxpayers with partners who earn less than the personal allowance are only eligible for marriage tax allowance.

Do you need any professional assistance?

DJ Colom is designed to offer professional support to the married couples in the UK to find out if they are due a tax rebate. Expert accountants at DJ Colom can calculate the potential claim amount and will introduce you to certified accountants and claims specialists to help you claim the money back.