A little publicised marriage allowance has been introduced by HMRC which could mean that the average married couple could be better off by £250 per year.
This is called Marriage Allowance and must be applied for. You can apply here.
Basically you can transfer £1,250 of your personal allowance (the amount you can earn before paying tax) to your partner and this will reduce their tax liability by up to £250 for the tax year. The lower earner must have an income of £12,500 or less but you can visit the HMRC page to find out more information and apply for marriage allowance.
The higher earner has to be earning between £12,501 and £50,000. Your application is completed online with HMRC's marriage allowance application page and if the application is successful it will be backdated to 6th April. If you are employed or receive a pension the allowance will be given via a change in tax code. If you are self-employed the marriage allowance will be given when your self assessment tax return form (SA100) is submitted. Marriage allowance continues each year unless you notify HMRC of a change in circumstances or either party cancels it.
Bruton Young Bookkeeping can point you in the right direction for advice on a variety of financial matters. We have a panel of financial advisors and accountants that can assist with financial advice. Contact us for more information.
