A couple managed to secure a £1,037 tax rebate after following a tip from Money Saving Expert founder Martin Lewis.
The rebate came through the Government’s Marriage Tax Allowance, which enables married couples or those in a civil partnership to reduce their tax bill by up to £252 a year.
With many forms of tax, people can backdate claims by as many as four years before the current tax year.
However, the current tax year ends on April 5, which means if people claim before this date, they can get their marriage tax allowance for the 2019-20 tax year, assuming they were eligible for it.
In the latest Money Saving Expert (MSE) newsletter, the team wrote: “If you’re married/civil partnered and one of you is a basic 20 percent taxpayer and the other’s a non-income taxpayer, you’ve just 3 DAYS to apply for marriage tax allowance before losing up to £250 for the 2019/20 tax year. (sic)
“It’s quick and easy, as our success of the week Paul found.”
Paul was then quoted to say: “After seeing Martin talk about the marriage tax allowance on TV, we applied using the Government Gateway. Four days later, we received a cheque for £1,037. Thank you, we watch every show.”
Marriage Allowance lets people transfer £1,260 of their personal allowance to their husband, wife or civil partner.
This reduces their tax by up to £252 in the tax year from April 6 to April 5 the next year. To benefit as a couple, the lower earner must normally have an income below the Personal Allowance, which is usually £12,570.
People can calculate how much tax they could save as a couple by using the Government’s calculator.
It should be noted that, when a portion of a person’s personal allowance is transferred to their partner, they might have to pay more tax themselves. However, as a couple, they could still end up paying less overall.
If both have no income other than their wages, then the person who earns the least should make the claim.
Mr Lewis previously raised the alert about the allowance on ITV’s This Morning show, stating that while “almost everybody eligible” will be better off by claiming, it depends on how much the taxpayer earns to know if they’ll benefit.
Mr Lewis explained: “If the taxpayer earns over £14,000 a year, you’re better off.
“If the taxpayer earns somewhere between £12,570 and £14,000 and the non-taxpayer is only just beneath the threshold where they pay tax, then they might be giving 10 percent of their tax-free threshold to them.
“They’re not going to use it all and they’ll be charged and taxed on more, so it can be worse off in that case.
“But it’s a very, very narrow band of people who are near, who are low earners, both low earners, both near the threshold – one just below, one just above – where it may not work.”
However, he noted: “An enormous majority of people where there’s a non-taxpayer and a taxpayer will be better off doing this.”
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