Friends, I have something so exciting to share with you! Have you heard of the Marriage Allowance? Maybe? I first heard of it while watching Martin Lewis on the Money Saving Expert show a few months ago. At the time Jeff and I did wonder whether we already had that tax allowance or not, but did we check it? Nope.
"Lauren, what is the Marriage Allowance?" you may be wondering. It's simply a tax break if you're married or in a civil partnership. Moneysavingexpert.com says, "The marriage tax allowance is a way for couples to transfer a proportion of their personal allowance (the amount you can earn tax-free each tax year) between them."
Last night, I was having a "fun" evening checking the current tax code on my last wage slip when I spotted a link to the Marriage Allowance on the right hand side of the screen. Because I was completely bored trying to understand the meanings of the different tax codes by then, my curiosity forced me to click on the link. I'll give you the link to get you to the money you may be owed quicker - click here.
A couple's tax can be reduced by up to £238 every tax year - 6th April to 5th April of the following year. You - the lesser earner and applicant - need to earn less than your spouse and have an income of £11,850 or less (this tax year) - you aren't a tax payer. Your spouse's income must be between £11,851 and £46,350 (£43,430 in Scotland) for you to be eligible. Yep, this is also on the gov.uk website - here's the link again. The article on Moneysavingexpert.com explains the math behind this and gives an example.
"Lauren, I don't have time right now to do this." Ten minutes! That's all it took me to apply. All you need is your and your spouse's National Insurance numbers and one of the forms of ID on the gov.uk webpage. The non-taxpayer (the one earning less than £11, 850 per year) must be the one applying for the allowance transfer.
So, click on the link at the bottom of the page and get started claiming back some money. Oh, did I mention you can claim back money on the past three tax years? The thresholds are slightly lower each year, but the link walks you through the process and in the end you may (or may not) get some money back and/or have the correct tax code applied to your spouse's wage slip - reducing the tax you, as a couple, pay by up to £238 per year. You may just get a big fat cheque in the post any day now for the previous years.
Quick result: Jeff received an email early this morning telling him that his tax code has been changed to reflect the Marriage Allowance. We may or may not get a bit back from last year... we shall see soon!
Don't wait like Jeff and I sillily did. Do it right now.