How does the Marriage Allowance work?
The Marriage Allowance is a simple way for couples to save on tax.
You transfer £1,250 (10%) of your Personal Allowance to your husband, wife, or civil partner if they earn more than you.
In 2020/21 tax year, this reduces their tax by up to £250.
Are we eligible?
- you’re officially married or in a civil partnership
- one of you earns less than the Personal Allowance (£12,500 in 2020/21)
- the other partner is a basic 20% rate taxpayer: less than £50,000 in the 2020/21 tax year
- you were both born on or after 6 April 1935.
How much can my partner get?
You can backdate your claim by up to four years:
- 2016/17 – £220
- 2017/18 – £230
- 2018/19 – £238
- 2019/20 – £250
- 2020/21 – £250.
So if you claim now and backdate, your partner/spouse can get up to £1,188.
How do we apply for it?
|How to apply||Details|
|Who has to apply?||The low earning partner|
|Where to apply?||online at HMRC’s website or you can call 0300 200 3300|
|What do you need?||both your NI numbers and passport or other IDs|
|When is the deadline?||No deadline (but you can only claim for up to 4 tax years)|
How does my partner receive it?
HMRC will give your partner their extra allowance either:
- as a cheque: when you backdate it
- by changing their tax code – it will show in the PAYE payslip
- through their Self Assessment tax return.
Other frequently asked questions
- My partner has died since 5 April 2015, can I apply? Yes
- I am getting a pension, can I apply? Yes
- I live abroad, can I apply? Yes
- Do I need to apply every year? No, unless circumstances change
- What if we divorce? You must cancel the Allowance – contact HMRC
- What if my income increases? You must contact HMRC
- I was born before 1935, can I apply? No, but there is a better allowance for you – the Married Couples’ Allowance.
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