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
 
Kim Clayden
13th April 2018 Making Tax Digital Seminar Two – St Ives

       Our second MTD seminar was in St Ives at the Slepe Hall Hotel on Thursday 12th April. Which was a much more convivial venue. A smaller group meant more personal conversations with our clients and we were able to give a number of clients the time they needed to fully understand the next steps for…

Read More »

Daniel Coleman
11th April 2018 Making Tax Digital ‘Roadshow’ – Huntingdon

We have begun the first of eight seminars discussing the preparation needed for making tax digital. Our first seminar kicked off in Huntingdon at the Marriott hotel and was a great success. With around 30 people attending we explained to clients what making tax digital was, how it was going to effect them and more…

Read More »

Paul Jefferson
5th April 2018 Reclaiming VAT: Checking the validity of your supplier invoices.

  VAT registered businesses will be aware that they can only reclaim VAT on business purchases if they have a valid VAT invoice.   For supplies over £250, this invoice should disclose: Supplier: sales invoice unique sequential invoice number, name, address and VAT number. Date and tax point, if different Your name and address Description…

Read More »

Scott Butcher
5th April 2018 Deadline Approaching for ATED forms

  If you have a residential property which is worth more than £500,000 and is held in a company then you will be required to complete an Annual Tax on Residential Dwellings (ATED) form. The deadline is fast approaching with all ATED forms for 2018 to 2019 tax year being due for filing by 30th…

Read More »

Vanessa Pearson
5th April 2018 HMRC loses IR35 case

  A contractor in the construction industry, Mark Daniels, has won his appeal against HMRC. In MDCM Ltd v Revenue & Customs, HMRC were defending their decision that a contract between Mr Daniels’ personal service company MDMC Ltd and recruitment agency Solutions, which provided his services to Structure Tone Ltd,  should have been caught by…

Read More »

Richard Alecock
5th April 2018 Top mistakes tax payers make when completing their tax returns.

  Making mistakes on self assessment tax returns however innocent can lead to enquiries, investigations and additional tax, interest and penalties. Below are some of the top mistakes many people make: Forgetting to include income from a previous employment that ended part way through a tax year. Forgetting to include benefits from a previous employment…

Read More »