Taxation

HMRC issue marriage allowance claims reminder

HMRC have issued a reminder that married couples and those in civil partnerships could reduce their income tax by up to £252 a year by sharing their Personal Allowances.

Marriage Allowance allows married couples or those in civil partnerships to share their personal tax allowances if one partner earns an income under their Personal Allowance threshold of £12,570 and the other is a basic rate taxpayer.

They can transfer 10% of their tax-free allowance to their partner, which is £1,260 in 2021–22. It means couples can reduce the tax they pay by up to £252 a year. Couples can backdate their claims for any of the four previous tax years, which could be worth up to a total of £1,220.

Paul Campbell

Paul is the founder of CAB digital accountants along with his wife Pam, and is a Chartered Accountant with extensive experience in industry and practice

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