Her Majesty’s Revenue and Customs (HMRC) is encouraging more people to claim marriage allowance online. Here is How to claim marriage allowance.
The online method is being promoted as a quick and convenient way to apply for the marriage allowance, which is part of the UK tax system, and which the government is encouraging more people to claim. The facility to claim the allowance via phone is also available.
What is Marriage Allowance
For the uninitiated, the marriage allowance is a part of the UK tax structure which enables one partner in a marriage or a civil relationship to transfer part of his/her tax-free personal allowance to the other partner. It’s different to the married couple’s allowance in that it’s not offered as an extra allowance, but can be claimed if one partner cannot claim all of his/her personal allowance.
The allowance was introduced in 2015 by the HMRC, and is estimated that four million couples in the country are eligible to claim it. Only three million couples have so far claimed and enjoyed the benefits of the allowance, while one million are yet to do so.
For 2018/19, the marriage allowance has been set at £1,190, which enables a maximum tax saving of £238. The full amount has to be transferred under the allowance and the primary condition is that the partner should not be liable for income tax at a higher rate than the applicable base rate.
Interested parties can apply for the 2018/19 claims now. If eligible, they can even backdate it, with which a tax refund would be generated. In the event of one’s partner having died, the living partner can make a retrospective claim. If a couple is not sure about their income level for the tax year 2018/19, they can wait till the end of the year and decide to make a claim.
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