The Marriage Allowance is a tax benefit designed to help married couples and civil partners reduce their overall tax bill. Here’s a guide to understanding who can claim the allowance and how it works:

Key Eligibility Criteria

1. Personal Tax-Free Allowance:

• Lower Earning Partner: One partner must earn below the personal allowance threshold of £12,570 for the 2024-25 tax year. This means their income must be less than the personal allowance, effectively making their tax liability nil or very low.
• Higher Earning Partner: The other partner, who receives the transfer, must have an income that does not exceed the basic rate threshold. For the 2024-25 tax year, this means their income should be between £12,571 and £50,270 (or £43,662 in Scotland).

1. Income Limits:

• Lower Earning Partner: Must not be using their full personal allowance. This means their income is less than £12,570.
• Higher Earning Partner: Must be within the basic rate tax band, meaning their income is between £12,571 and £50,270 (or £43,662 in Scotland).

How the Allowance Works

1. Transfer of Allowance:

• The lower earning partner can transfer up to £1,260 of their unused personal allowance to their spouse or civil partner.
• This transfer could potentially result in a tax saving of up to £252 for the higher earning partner (20% of £1,260).

1. Maximum Savings:

• The maximum annual saving is £252, which is equivalent to £21 per month.

Backdating Your Claim

1. Eligibility for Backdating:

• You can backdate your claim for up to 4 years. This means you can claim for the 2020-21, 2021-22, 2022-23, and 2023-24 tax years in addition to the current 2024-25 tax year.
• If eligible, this could amount to a total tax saving of up to £1,260 if you have qualified for each of these tax years.

1. How to Claim:

• Online Application: Use HMRC’s online Marriage Allowance calculator to check your eligibility. Once confirmed, you can apply online through GOV.UK.
• Paper Application: If you prefer, you can also claim by post, though online applications are generally faster.

Steps to Claim

1. Check Eligibility:

• Use the Marriage Allowance calculator on HMRC’s website to determine if you qualify.
• Ensure that both you and your partner meet the income criteria for the current and past tax years you wish to claim for.

1. Apply:

• Complete the application online through GOV.UK to transfer the allowance.
• If you are claiming for previous years, make sure to indicate the relevant tax years in your application.

1. Receive Confirmation:

• After applying, HMRC will process your claim and adjust your tax code accordingly. You should receive confirmation from HMRC about the changes.

Important Considerations

• Income Changes: If your or your partner’s income changes significantly, reassess your eligibility for the Marriage Allowance.
• Marital Status: The allowance is only available to those who are legally married or in a civil partnership.
• Ongoing Review: Review your eligibility annually to ensure you continue to benefit from the allowance if your circumstances change.

Summary

The Marriage Allowance is a valuable tax relief for married couples and civil partners where one partner earns less than the personal allowance and the other is within the basic rate tax band. Ensure you meet the eligibility criteria and consider applying for backdated relief if applicable. For accurate and updated information, use HMRC’s tools and resources available on GOV.UK.