There is a certain amount of your taxable income that is not taxed. This amount is called your allowance. Each year, you can get this much without paying taxes on it. This blog post gives a simple explanation of the married couples allowance, how to get it, and how much you can get. Knowing how Marriage and Married Couple’s Allowances work is helpful. Usually, they go up every year. Most price hikes take effect at the start of the tax year (6 April).
Marriage Allowance
If you are married or in a civil partnership, one of you can give up to £1,260 of your Personal Allowance to the other. This is a little more than 10% of the basic Personal Allowance of £12,570 for the tax year 2022-23. (Basic Personal Allowance is the amount of income you don’t have to pay taxes on.)
This transfer can save a partner up to £252 in tax during the tax year (6 April to 5 April of the next year).
Some people call Marriage Allowance the Marriage Tax Allowance.
Marriage Allowance might be for you if:
- if you’re married or in a civil partnership and don’t get the Married Couple’s Allowance
- make less than your Personal Allowance, you don’t have to pay tax because you’re not liable to. This means that most people will make less than £12,570 in 2022-23.
- Your partner pays tax at the basic rate on their income, so they don’t have to pay tax at the higher or additional rates. Before your partner can get the Marriage Allowance, they will usually need to make between £12,571 and £50,270. If you live in Scotland, your partner must pay the starter, basic, or intermediate rate, which usually means that their income is between £12,571 and £43,662.
With the Marriage Allowance, the person who earns more will get an extra £1,260 on top of their basic Personal Allowance. As part of the Marriage Allowance, 20% of the amount of money given to a partner is taken off of their tax bill. This is not the same as the Personal Allowance, which is taken out of taxable income before tax is calculated.
Here’s an example. If you live in Scotland, where the income tax bands are different, this won’t work for you. If you make £30,000 a year, you pay tax at the basic rate. If your partner makes less than £8,000 a year, they don’t have to pay tax. This means that your family could have an extra £252:
| – | Without Marriage Allowance | Including Marriage Allowance |
|---|---|---|
|
Income |
£30,000 |
£30,000 |
|
Personal Allowance |
£12,570 |
£13,830 |
|
Income Tax |
£3,486 |
£3,234 |
|
Tax saving |
£0 |
£252 |
| – | Without Marriage Allowance | Including Marriage Allowance |
|---|---|---|
|
Income |
£8,000 |
£8,000 |
|
Personal Allowance |
£12,570 |
£11,310 |
|
Income Tax |
£0 |
£0 |
|
Tax saving |
£0 |
£0 |
In this case, Marriage Allowance is less helpful when the non-taxpayer earns more than £11,310. This is because the non-taxpayer would have to pay taxes on income over £11,310, not the basic Personal Allowance amount of £12,570.
Most of the time, the tax code of the person who gets the Marriage Allowance will change to “M.” This shows that their partner is giving them a Marriage Allowance. If the person whose Personal Allowance was transferred also has a job, their tax code will change to “N.” This shows that they chose to use the Marriage Allowance.
How to apply for Marriage Allowance
You can fill out an application for HMRC at GOV.UK. Starts a new window. You only need your National Insurance numbers and proof of who you are. You can also call 0300 200 3300 to apply.
Getting the Marriage Allowance for the past
Each year you apply, you must meet the requirements. Keep in mind that the threshold for people who don’t pay taxes and people who pay taxes at the basic rate is different for each tax year. You can go back up to four years with your claim.
How to apply for Marriage Allowance after your partner has died
If your partner died after 2016, but you still meet the other requirements for Marriage Allowance, you can still apply for the benefit. You will ask for the benefit to go back up to four years. Call 0300 200 3300* to get Marriage Allowance if your partner has died.
Married Couple’s Allowance
If either or both of the partners were born before April 6, 1935, they may be able to get a larger allowance called the Married Couple’s Allowance. This means that on April 5, 2023, at least one person in the couple must be at least 88 years old for the 2022/23 tax year in order to get an allowance.
For marriages that happened before December 5, 2005, Married Couple’s Allowance is based on the husband’s income. Even so, it can be given to the wife. After this date, it will be based on the income of the person who makes the most.
The Married Couple’s Allowance gives married people a 10% tax break. This means that the partner with the higher income gets 10% of the tax that the couple pays. There are limits on how much tax can be claimed and how much can be earned while getting the benefit.
This could lower your tax bill by between £353 and £912.50 a year for the 2022-23 tax year.
Note: Please note that the information provided on this blog is for general informational purposes only and is not intended to be comprehensive or to constitute professional advice. For accurate and up-to-date information, please visit the official website of HMRC.
