Married couples and those in civil partnerships are being encouraged by HM Revenue and Customs (HMRC) to take 30 seconds to determine their eligibility for the Marriage Allowance.
Through the HMRC's online calculator during Talk Money Week, couples can swiftly discover if they qualify, potentially boosting their finances by up to £252 annually. Eligible couples often include situations where one partner works while the other's income falls below the £12,570 personal allowance, spanning retirees, caregivers, individuals with health conditions, part-time or low-income workers.
Surprisingly, many among the 68% of those in their sixties in marriages or civil partnerships are unaware they can claim Marriage Allowance, especially if retired with a working partner. The UK Men’s Sheds charity is highlighting this benefit to its retired members.
This allowance empowers the lower-earning partner to transfer a portion of their £12,570 Personal Allowance to their spouse or civil partner, potentially saving up to £252 yearly. Moreover, eligible couples can backdate claims for the previous four tax years, leading to a lump-sum payment exceeding £1,000.
To qualify, one partner’s income should be below £12,570, while the higher-earning partner's income must range between £12,571 and £50,270 (£43,662 in Scotland).