Are you and your partner making the most of your tax-free allowances? If one of you is a non-taxpayer and the other is a basic-rate taxpayer, you could be missing out on a tax break worth £252 every year. This isn’t a complicated scheme; it’s the UK government’s Marriage Allowance, and it’s designed to put money back into the pockets of married couples and civil partners.
At Taxtosalary.fun, we specialize in breaking down complex tax and salary rules into simple, actionable guides. In this article, we’ll walk you through exactly what the Marriage Allowance is, how to check your eligibility in minutes, and how to apply to claim your £252 tax saving—and potentially over £1,000 in backdated claims.
What Is The Marriage Allowance In Simple Terms?
Let’s start with the basics. Your personal allowance is the amount of income you can earn each year before you start paying income tax. For the 2024/25 tax year (6th April 2024 to 5th April 2025), this is set at £12,570.
The Marriage Allowance lets the lower-earning partner transfer £1,260 of their unused Personal Allowance to the higher-earning partner.
What does this achieve?
By transferring this £1,260, the higher earner effectively increases their own tax-free allowance. This reduces the amount of income tax they have to pay by 20% on that £1,260.
Let’s do the quick tax calculation:
£1,260 x 20% = £252.
That’s a straightforward saving of £252 on your annual tax bill. It doesn’t come as a lump sum cheque; instead, it’s typically processed by adjusting the higher earner’s tax code, resulting in a slightly higher take-home pay each month.
Marriage Allowance Eligibility: Are You and Your Partner Qualified?
Not every couple will qualify. The rules are specific but easy to check. You must meet all the following criteria:
- You are married or in a civil partnership. Unfortunately, cohabiting couples who are not married or in a civil partnership do not qualify.
- The lower earner has an income of £12,570 or less. This means they do not use their full personal allowance and are a non-taxpayer.
- The higher earner has an income between £12,571 and £50,270 (or £43,662 in Scotland). This means they are a basic-rate taxpayer. If the higher earner pays the 40% higher rate of tax, you are not eligible.
You can also backdate your claim for up to four previous tax years if you were eligible during that time. This could mean a one-off payment of over £1,000 from HMRC!
How Your Tax Code and Take-Home Pay Are Affected
This is where many people get confused, but it’s simple when you know how it works. Once your application is successful, HM Revenue and Customs (HMRC) will adjust the higher earner’s tax code.
For example, a standard tax code is 1257L (which corresponds to the £12,570 Personal Allowance). After the transfer, the higher earner will receive an extra £1,260 added to their allowance.
Their new allowance becomes £13,830. This will be reflected in a new tax code, likely 1383L.
This change in your tax code means the higher earner will pay less tax each month through PAYE (Pay As You Earn). Instead of a refund, you get the benefit spread out over the year in your regular pay, boosting your monthly salary.
How to Apply for the Marriage Allowance: A Step-by-Step Guide
Applying is free and should only take about 10 minutes. The key thing to remember is that the application must be made by the lower earner—the one giving away part of their allowance.
Step 1: Get Your Documents Ready
You will need:
- Your National Insurance number.
- Your partner’s National Insurance number.
- A form of ID to verify your identity. This is usually done through your Government Gateway account. If you don’t have one, you can create it during the application using your passport or P60.
Step 2: Apply Online via Gov.uk
The quickest and easiest way is through the official GOV.UK website. You can find the application here.
The form will guide you through confirming your identity and your partner’s details. It’s a very straightforward process.
Step 3: What Happens After You Apply
Once you submit your application, HMRC will process it. They will then contact the higher earner to inform them of the change and ensure they agree. Assuming all is well, your new tax codes will be issued to your employers, and the savings will begin.
If you are eligible for backdated years, HMRC will usually calculate the amount owed and send it directly to the higher earner as a lump-sum tax refund. This will be paid into the bank account where they normally receive their tax refunds.
Frequently Asked Questions (FAQs) About The Marriage Allowance
What if we are pensioners?
The same rules apply. As long as one partner has an income below the personal allowance and the other is a basic-rate taxpayer (with income between £12,571 and £50,270), you can claim.
What if our financial situation changes?
If your incomes change during the tax year and you no longer meet the criteria, the Marriage Allowance claim will be cancelled automatically. You must inform HMRC if you think you are no longer eligible. If you become eligible again in the future, you will need to reapply.
Can I claim if my partner has passed away?
Yes, you can backdate a claim for any tax years that you were eligible while your partner was alive, as long as you claim within four years of the end of that tax year.
Does it affect my state pension or other benefits?
No. The Marriage Allowance does not affect the State Pension or any other benefits you might receive, such as Universal Credit.
What if I’m self-employed?
You can still claim! The benefit is applied through your tax code. If you are self-employed and your tax is calculated via a self-assessment tax return, the allowance will be factored in when your tax bill is calculated, often resulting in a lower payment.
Don’t Leave Money on the Table: Claim Your £252 Today
The UK Marriage Allowance is a valuable tax benefit that thousands of eligible couples overlook. It’s a simple process that can lead to significant savings, putting more money back into your household budget every year.
To recap:
- Check your eligibility: Are you married? Is one a non-earner/low earner and the other a basic-rate taxpayer?
- Apply as the lower earner: Use the official GOV.UK website.
- Enjoy the savings: See the benefit in your adjusted tax code and higher take-home pay.
Ready to see how this affects your personal finances? Use our free UK Tax Calculator to understand your current tax-to-salary breakdown and see how your net salary could improve after claiming the Marriage Allowance.
If you found this guide helpful, explore our other blogs to learn more about tax codes, student loan repayments, and how to maximize your pension contributions.