Millions of Couples are Missing Out on Over £200 a Year
- 2 million eligible couples aren’t claiming Marriage Tax Allowance
- Can get £230 a year with it
- How can you qualify and how can you claim it?
Research from investment company Royal London, has shown that an estimated 2 million couples are missing out on over £600 a year from not claiming Marriage Tax Allowance.
When the allowance was introduced, the government claimed that it would help 4.2 million couples in the UK.
However, Royal London found that only 2.2 million couples have so far received it, meaning that another 2 million are missing out on the benefit.
It estimated that the total amount of unclaimed allowances is worth £1.3 billion.
Sir Steve Webb, a former pensions minister and now director of policy at Royal London, said, “The take-up of the new allowance is shockingly low.
“Even in its third year of operation, around two million couples who could benefit from the marriage allowance are not doing so.
“When family finances are so tight, I would encourage every married couple to check whether they might be eligible, including for the last two years, as they could qualify for a useful lump sum, as well as a reduction in their ongoing tax bill.”
This comes after it was found that two thirds of pensioners aren’t claiming their full benefits, and 97% of part-time carers are missing out on a National Insurance credit.
How do you qualify for Marriage Tax Allowance?
Marriage Tax Allowance was introduced in 2015 to help married couples and couples in a civil partnership, where one partner pays standard rate income tax, and the other is a non-taxpayer.
It allows the lower earner to transfer £1,150 of their personal, untaxed income, to their higher earning partner.
The lower earner must be earning less than £11,50 a year for this to be applicable, and it saves £230 a year for the couple.
Marriage Tax Allowance can also be backdated, so if you are eligible for it but haven’t been claiming, then you can backdate the claim to include any tax year since April 2015.
Backdating has also been extended to cover bereaved partners- if you or your spouse were eligible for it before their death, then you can still claim the backdated payment.
Jane Eillision, Financial Secretary to the Treasury, said, “For more than four million eligible married and civil partner couples, the Marriage Allowance could be a welcome financial boost.
“What better time than the new year to claim?”