HMRC Wants to Give Money Away Shocker!

We’ve become increasingly used to HM Revenue and Customs finding new ways to take money off us, but now they are saying that many of us are not claiming back an allowance that we are entitled to, often because we are not even aware of it..

The marriage tax allowance, a David Cameron initiative, allows a spouse or civil partner who does not pay income tax – normally earning less than £11,000 per annum – to transfer up to £1,060 of their personal tax-free allowance to their partner, providing that person is a basic taxpayer with earnings between £11,000 – £43,000 in the current tax year. That would save the couple £220 on their tax bill each year.

According to HMRC, of the 4.2 million people entitled to the allowance, only 1.67 million have claimed it in the two years since inception in April 2015. You can however make a back-dated claim; the allowance will then automatically be renewed each year until such time as the couple’s circumstances change.