Millions of UK couples could owe up to Â£ 1,000 from HMRC, according to Martin Lewis of Money Saving Expert.
The financial expert and TV presenter has urged those who are married or in a civil partnership to know if they can claim tax relief of up to Â£ 250 per year.
As the Liverpool Echo reportsIf you fall into one of these categories and have not claimed a marriage tax allowance, you could owe up to Â£ 1,000, which can be backdated to 2017.
Speaking in a special edition of The Martin Lewis Money Show Live, the financial reporter explained: “If you are a married or civil union couple – not in a common-law relationship, living together does not count – and one of you are a non-taxpayer, the other is a 20% base rate taxpayer, so that person can give 10% of their allowance tax-free to the other person.
âYou are applying online at gov.uk and it’s worth around Â£ 250 this year, but you can go back four years. Past years are by check, this year is by tax code change. It’s very lucrative , there are over a million people who do not claim it. “
How does the marriage tax allowance work?
If one partner earns less than their personal allowance, which is Â£ 12,570 for tax year 2021/22 and the other partner is a base rate taxpayer (earning Â£ 12,571 to Â£ 43,662), the income the lowest can transfer 10% of their personal allowance. to the highest income and reduce the tax bill of the highest income.
This transfer means that the partner with the higher income now enjoys a higher personal allowance and will pay less tax on their total income.
Visit gov.uk to learn more about marriage allowance and to make a claim.