Nearly half of eligible couples not claiming marriage tax allowance

26th September 2017

 

Following last year’s report from HMRC  showing that only a quarter of couples eligible for marriage tax allowance were actually claiming, figures have reduced but still stand at just over a half of couples missing out on the £230 a year they are entitled to.

Although the government have tried to simplify the application process, since the tax allowance was introduced back in 2015 only 2.2 million couples have claimed it versus the 4.4 million eligible.

HMRC have recently started to raise awareness through their advertising campaigns to persuade couples to apply, however although applications are increasing year on year claims have been much lower than expected by HMRC.

How does the marriage allowance work?

Many of those eligible may not be aware they are entitled to the marriage tax allowance or may not understand the application process so here are a few helpful pointers for couples looking to claim the allowance –

  • Partners must either be married or in a civil partnership to be eligible
  • One partner needs to be earning at least £11,500 a year, and paying tax at the basic rate of 20%. If he or she is earning over £45,000 they are not eligible (£43,000 in Scotland)
  • The other partner must be earning less than £11,500 in 2017-18 and thus paying no tax
  • If the above conditions are met, the partner not paying tax can transfer 10% of his or her tax allowance to a partner, so saving £230 in this tax year
  • Couples can make back-claims for previous years

If you still have queries regarding the marriage allowance, speak to your usual Whiting & Partners representative or get in touch with your local office to talk through your individual circumstances.



 
Other items in Blogs
 
Paul Jefferson
22nd May 2020 Dividend update

It is common practice for director/shareholders to be paid a modest salary through PAYE and pay the balance of their remuneration in dividends.  This of course is perfectly permissible if the company has profits available to distribute to shareholders and there is no breach of directors’ duty.  Unfortunately, the dramatic effect that the Coronavirus is…

Read More »

Lisa Smith
19th May 2020 Covid-19 –Statutory Sick Pay Rebate Scheme

The Government have announced that the Statutory Sick Pay Rebate Scheme, which will enable employers with fewer than 250 employees to claim Coronavirus-related Statutory Sick Pay will launch online on 26 May 2020.   Employers are eligible to use the scheme if:   they’re claiming for an employee who’s eligible for sick pay due to…

Read More »

Nick Edgley
19th May 2020 Company cars and fuel during COVID-19

If you are an employee with a company car, and maybe fuel provided, it is worthwhile considering giving up the car, or fuel, during the current pandemic if you are working from home or furloughed.   A company car benefit in kind (BIK) is a set amount based on the list price and emissions regardless…

Read More »

Ian Piper
18th May 2020 Covid-19: Companies House dissolutions now put on hold

Like many Government departments, Companies House have relaxed various compliance requirements to support businesses to get through this Covid-19 period. In their latest announcement, they are making the following temporary changes to their strike off policies:   Voluntary (Form DS01 submitted) Strike Off Applications – Process halted after notice published in London Gazette. Automatic Dissolutions…

Read More »

Katharine Bebbington
13th May 2020 Be scam-aware – know the signs

We are in the middle of  the biggest crisis our country has seen in decades, and for the majority of us, we are all working together to get through this.   However this has created a new danger with cybercriminals looking to exploit our fears or to scam us financially.  You may receive emails or…

Read More »

Lisa Smith
7th May 2020 COVID-19 – Temporary Zero Rating of Personal Protective Equipment

HMRC have announced temporary zero rating of personal protective equipment (PPE) recommended for use by Public Health England.  This is good news for care homes and others that are incurring significant additional costs on purchasing PPE at the moment but are unable to reclaim VAT.  The zero-rating is effect for supplies made between 1 May…

Read More »