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Thousands Of Couples Are Missing Out On Wedding Cash Back

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Thousands Of Couples Are Missing Out On Wedding Cash Back

More couples are starting to get married again following the pandemic, but many are unaware about an allowance which could save them up to £252 per year.

The Marriage Allowance is a scheme that allows those who do not pay tax - aka those earning below the threshold of £12,570 - to transfer 10 per cent of their personal tax-free allowance to their spouse.

Many couples many are unaware about an allowance which could save them up to £252 per year (Credit: Shutterstock)
Many couples many are unaware about an allowance which could save them up to £252 per year (Credit: Shutterstock)

According to new data from HM Revenue and Customs (HMRC), nearly 1.8 million married couples are using the allowance, but it's believed thousands are yet to claim.

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The allowance allows couples to share their personal tax allowance, if one is basic rate taxpayer while the other earns under the £12,570 threshold.

And HMRC is warning that couples could be eligible now, even if they never were previously.

"Summer has always been a popular season for weddings, and newly married couples or those in civil partnerships could be eligible for the tax saving. And even if they have been married for years, a change in circumstances could also mean they are newly eligible," they said.

"They can transfer 10 per cent of their tax-free allowance to their partner, which is £1,260 in the 2021 to 2022 tax year. It means couples can reduce the tax they pay by up to £252 a year. Couples can backdate their claims for any of the four previous tax years, which could be worth up to a total of £1,220."

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Nearly 1.8million married couples are using the allowance, but it's believed thousands are yet to claim (Credit: Shutterstock)
Nearly 1.8million married couples are using the allowance, but it's believed thousands are yet to claim (Credit: Shutterstock)

For example, if you have experienced any of the following changes in circumstances, you could be eligible:

  • A recent marriage or civil partnership
  • One partner has retired and the other remains working
  • A change in employment due to Covid-19
  • A reduction in working hours which means earnings fall below their Personal Allowance
  • Unpaid leave or a career break
  • One partner is studying or in education and not earning above their Personal Allowance
Nearly 1.8million married couples are using the allowance, but it's believed thousands are yet to claim (Credit: Shutterstock)
Nearly 1.8million married couples are using the allowance, but it's believed thousands are yet to claim (Credit: Shutterstock)
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Angela MacDonald, of HMRC said: "Marriage Allowance lets eligible couples share their Personal Allowances and reduce their tax by up to £252 a year. Nearly 1.8 million couples are already using the service – it is free, quick and easy to apply, just search ‘marriage allowance’ on GOV.UK."

To check eligibility and make a claim, visit the website here.

Featured Image Credit: Shutterstock

Topics: News, Wedding, Money

Lucy Devine
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