HMRC could owe couples £1,000 payout and urges them to do '30 second check'

27 February 2024 , 11:29

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Couples could be owed a payout if they have not claimed Marriage Tax Allowance (Image: Getty Images)

Couples could receive a £1,000 payout from HMRC this tax year by sharing their unused tax allowances.

The tax office says March is the most popular month for marriage allowance applications with 70,000 couples applying in the month last year. Marriage tax allowance allows you to transfer £1,260 of your personal allowance to your spouse or civil partner to cut their yearly tax bill. Your personal allowance is the amount you can earn tax-free each tax year.

Couples who have not applied before can also backdate their claims for the previous four tax years which could potentially give them a lump sum payment worth over £1,000. Alongside this, they will also reduce their tax bill for 2023-24 by up to £252.

Angela MacDonald, HMRC deputy chief executive and second permanent secretary, said: “Marriage Allowance keeps money in your pocket by reducing the amount of tax you and your spouse pay by up to £252 a year. You can check your eligibility and apply on GOV.UK. Search ‘Marriage Allowance’ to find out more.”

Have you claimed back £1,000s through marriage tax allowance? Let us know: [email protected]

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Who is eligible for Marriage Tax Allowance?

You need to be married or in a civil partnership to claim Marriage Tax Allowance, and you must have both been born on or after April 6, 1935. If you are just living together you won't qualify for the tax break.

One of you needs to be a non-taxpayer while the other person needs to be paying the basic 20% rate of tax. This usually means one of you doesn’t pay tax or earns less than £12,570 a year. The other person needs to be earning between £12,571 and £50,270 - or £43,662 in Scotland - which makes them a basic 20% rate taxpayer. If you are a higher or additional-rate taxpayer you also aren't eligible for marriage tax allowance.

To claim, the person who doesn’t pay tax needs to apply for the marriage tax allowance. Once you’ve put in the claim, it’ll count for tax years going forward as long as you still meet the eligibility criteria. If you’re applying for the current tax year, the higher earner will pay slightly less tax on their take-home pay. But if you're backdating for previous years, you will get a payout in the form of a bank transfer or cheque.

Here is how much marriage tax allowance is worth for this tax year, plus the four previous tax years:

• 2023/24 - £252

• 2022/23 - £252

• 2021/22 – £252

• 2020/21 – £250

• 2019/20 – £250

You can use an online tool called the Marriage Allowance Calculator to see if you are eligible which HMRC says takes only 30 seconds. You can apply online through the HMRC website or by calling 0300 200 3300. You'll need your National Insurance number and ID to hand.

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