UK Tax Benefit

[Anmer]

For those paying tax who have a spouse or civil partner whose total income is below the personal allowance (and do not pay tax) there's a little known tax benefit called the Marriage Allowance.

This was introduced in April 2015 and allows the non-tax paying spouse or civil partner to transfer up to 10% of their unused personal allowance to the other spouse/civil partner, potentially saving as much as £238 a year (2018/19).  Better still, one can claim this allowance for past years - 2015/16, 2016/17 and 2017/18.

My tax return is prepared by local accountants who made me aware of this yesterday.  Mind you, they never mentioned it in the previous years!  But that's another debate.

My wife doesn't work and her only income is her state pension which is less than her personal allowance.  I have pension and other income on which I pay tax.  I'm entitled to the Marriage Allowance from my wife, backdated.

Claiming the allowance is a doddle with a simple, easy to follow online submission which the non-tax paying half of the couple has to complete.  Back dated claims can be made at the same time.

The Marriage Allowance will net me approx £1,000 in tax refunds for the four years and £238 plus a year going forward.

I'm sure there are others who haven't heard of the Marriage Allowance and can claim it too.

Read all about it:

https://www.gov.uk/marriage-allowance

Claim:

https://www.tax.service.gov.uk/marriage-allowance-application/eligibility-check?_ga=2.48046372.202453501.1535445248-1412713217.1507196772

[Graham Bell]

I took advantage of this tax break some 3 or 4 years ago pre-empted from memory by an article by Paul Lewis in the Radio Times and I have to say as Inland Revenue affairs go it was,as I recall, a simple matter to claim this relief.
  Rather lax of your accountant Mike to overlook this as it has been in place for some years,beggars the question what else have they missed! 
Regards-
G.B.

[Anmer]

Thanks Graham.

Must add the Radio Times to my financial planning documents portfolio.

The accountants and I are in deep discussion!

[TEDDYBEAR]

Another great website is Moneysavingexpert.com. This is Martin Lewis website (ITV Program Presenter) which covers a huge amount of savings and advice includind changing banks and fuel suppliers. It also includes a signup to his weekly webpage update.
Regards
Bryan