Four Million Couples Are Eligible!

In Business, TAX by StevenLeave a Comment

This financial year sees the start of the new marriage allowance. More than four million couples are eligible for a tax allowance of up to £212, but you have to formally claim it.

Referred to by the Government as the Marriage Allowance, it is estimated that more than four million married couples and 15,000 civil partnerships are eligible for the tax break.

To be eligible for the Marriage Allowance, the individual making the claim must earn less than £10,600 and their higher earning spouse or civil partner earn between £10,601 and £42,385. This does exclude those with earnings outside of these amounts and unmarried couples.marriage
The new Marriage Allowance has been designed to help couples not considered as high earners to keep more of the money they earn by allowing the transfer of 10 per cent of the personal tax allowance to their spouse or civil partner. This equates to £1,060 for the 2015/16 tax year, which could save up to £212 on this year’s tax bill.

Registration is very straight forward. From April 6, HMRC has been contacting those already registered and if eligible, issue new PAYE tax codes. But don’t worry if you haven’t applied straight away as registration can take place at any time during the tax year and still receive the full allowance.

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