Money Saving Expert Martin Lewis has urged millions of couples in the UK to check whether they could be owed up to £1000 from HMRC.
People who are married or in a civil partnership can apply for a tax break of up to £250 per year – and this can be backdated back to 2017.
So if you fall into one of these categories and have not claimed Marriage Tax Allowance since 2017, you could be owed up to £1,000.
Speaking on a special edition of The Martin Lewis Money Show Live, the finance journalist explained: “If you are a married couple or in a civil partnership – not common law, just living together doesn’t count – and one of you is a non-taxpayer, the other is a basic 20% rate taxpayer, then this person can give 10% of their tax-free allowance to the other person.
“You apply online at GOV.Uk and it’s worth about £250 this year, but you can go back four years. The past years are done by cheque, this year is done by tax code change. It’s very lucrative, there are over one million people who aren’t claiming it.”
How does Marriage Tax Allowance work?
If one partner earns less than their personal allowance, which is £12,570 for the tax year 2021/22 and the other partner is a basic rate taxpayer (earning £12,571 to £43,662) then the lower earner can transfer 10% of their personal allowance to the higher earner and reduce the tax bill of the higher earner.
This transfer means the higher-earning partner now has a higher personal allowance and will pay less tax on their total earnings, according to the Daily Record.
Visit GOV.UK to find out more about Marriage Allowance and make a claim.