Martin Lewis explains tax break 'perk' for married people worth more than £1,200

Martin Lewis has offered advice to married couples

Married couples and people in a civil partnership are being urged not to miss out on a tax break worth more than £1,200.

In the latest edition of the MoneySavingExpert.com (MSE) newsletter, Martin Lewis urged couples to claim the annual rebate – worth £252 in the 2023/24 financial year – from HM Revenue and Customs (HMRC) before the current tax year ends on April 5. However, the founder of MSE.com stressed the ‘Marriage Allowance’ can only be claimed by those in a formally recognised commitment as it doesn’t apply to those cohabiting together.

Martin said it’s an “important perk that can be very worthwhile”, especially as some people may be able to backdate the claim to April 2019. This means couples could potentially be due tax relief worth £1,260, which could help boost household incomes at the start of the new year, reports the Daily Record.

Martin also shared his handy rule of thumb on eligibility. And there is also a full guide to the Marriage Tax Allowance on MSE.com here which explains everything in more detail.

Martin’s Marriage Allowance rule of thumb:

• You need to be married or in a civil partnership, not just cohabiting
• One of you must be a non-taxpayer – earning under £12,570 per year
• The other, a basic 20% taxpayer – earning between £12,570 and up to £50,000 per year (£43,000 in Scotland)

If you meet the requirements above, Martin explained: “The non-taxpayer can ask to shift 10% of their tax-free allowance to their spouse, meaning they can earn £1,257 extra tax-free. It’s worth an extra £252 this year. If you’ve been eligible since April 2019, it’s backdatable to then – provided you apply by 5 April 2024 – adding an extra £990 to the rebate.”

The online Marriage Allowance calculator on GOV.UK is the quickest and easiest way for couples living in Scotland, England, Wales and Northern Ireland to check if they are eligible for the tax boost. HMRC recently said more than 2.1 million couples currently benefit from Marriage Allowance, but thousands more may be missing out simply because they don’t realise they are eligible, particularly couples where one partner has retired, has given up work to take on caring responsibilities, or is unable to work due to a long-term health condition.

Other couples who may be unaware they could claim include those where one partner is working part-time or has a low-paid job and the other has income less than their personal allowance of £12,570. You can find out more about Marriage Allowance on GOV.UK here.

Backdated Marriage Allowance payments

You can claim back up to four years’ worth of the tax boost. Below is each tax year and the value of the allowance:

• 2023/24 – £252
• 2022/23 – £252
• 2021/22 – £252
• 2020/21 – £250
• 2019/20 – £250