Are you making the most of the Tax Allowances available to you?


 

You may not even have heard of the Marriage Transfer Allowance, however if you are married or in a civil partnership and your income is under £11,500 and your partner’s income is between £11,501 and £45,000, then you could be eligible! You can even apply if you are currently receiving a pension, or if you live abroad (as long as you still receive a personal allowance).

 

It works by allowing you to transfer £1,150 (for 2017/2018) of your personal allowance to your husband, wife, or civil partner (as long as they earn more than you). This means that their tax could be reduced by up to £230 for the tax year (6th April – 5th April).

 

Only just hearing about this but you were eligible last year? Not to worry, you can backdate your claim and reduce this year’s tax.

 

You can apply for the Marriage Transfer Allowance on the HMRC website, or if you prefer you could ring and apply over the phone. If your claim is successful then changes to your Personal Allowances will be backdated to the 6th April, the claim will then stay active for following years until your circumstances change, should this be a change in income resulting in you no longer being eligible, or through divorce or death. Any change in your circumstances should be reported to HMRC as they can they advise you as to whether your claim can stay active, or if it should be cancelled.

 

HM Revenue and Customs will allocate your partner part of your Personal Allowance by either changing their tax code to allow for their extra relief, and it will usually end with an ‘M’ (this is  not done instantly and can take up to 2 months), or they will allocate it when your partner submits their Self Assessment for the year.

 

Click here for more information https://www.gov.uk/apply-marriage-allowance