Martin Lewis says couples can get £13,830 personal tax | UK News

Martin Lewis has urged all married couples to take motion to secure a substantial tax benefit. The money-saving skilled highlighted how couples can declare helpful financial assist when one associate isn’t in employment.

Mr Lewis beforehand explained the scheme successfully supplies a £1,260 tax discount for married couples, noting it applies ‘offered one of you is aged under 90’ – particularly those born after April 5, 1936.

Approximately 2.1 million eligible people are failing to declare this money, and those who have not beforehand utilized may obtain £1,260 as a single fee by backdating their declare for the earlier 4 years plus the current 12 months.

The association permits one associate who isn’t a taxpayer to switch the unused portion of their personal allowance to their partner. Mr Lewis clarified: “Imagine we have a couple here. The crucial part of this. One of you needs to be a non-taxpayer, so you are not earning your full personal allowance you can earn before you start paying tax on it.”

Anyone not liable for income tax qualifies as a non-taxpayer for this reduction. The receiving associate must not pay more than the basic 20 per cent tax fee.

He explained: “Clearly you have to be married or civil partners. Then what happens is this, each of you have your £12,570 personal allowance. That’s the amount you can earn that you don’t pay tax on each year.

“So the non-taxpayer can apply to Gov.uk to transfer 10% of their tax-free allowance across to the basic fee taxpayer.”

He explained that this means the non-taxpayer now has an allowance of £11,310, whilst the taxpayer has a combined allowance of £13,830.

“Now that 10% further tax-free allowance they’ve, keep in mind they might have paid tax on it at 20%, so the gain there may be £252 a 12 months, and that’s what transferring across works, and in nearly every circumstance, even if the particular person right here earned a little bit above that threshold where they may pay a little bit of tax, but as long as the particular person on this facet is incomes over £13,830, you are always going to be internet up if there’s a non-taxpayer and a taxpayer.”

Mr Lewis warned of a rapidly approaching deadline, as it applies to a specific tax year – with this one ending on April 5. Those who haven’t been claiming the break could receive a substantial lump sum, he said: “The tax 12 months ends on the fifth of April, you can declare back up to 4 tax years as long as you’re eligible, which implies A complete gain of £1,258.

“The way it works for the current year your tax code is changed, for past years they send you a check or they send you a bank transfer. So the marriage tax allowance is absolutely crucial to do.”

Mr Lewis urged people to put the date of March 1 in their diary. Martin explained: “So this is what you need to do. Either put in your diary now to do this on the 1st of March. There are 2.1 million eligible couples who are not claiming this, who should be claiming this and could gain. So do it on the 1st of March, or if you’re the type of person, and some people are who go, if I don’t do it now I’ll never do it, then you can go onto gov.uk you can download a form online and then you can post that in.”

He continued: “And as long as it all happens before the 5th of April, you will get this year’s and you will be able to backclaim the prior 4 years. But frustratingly, I found out this afternoon they’ve just taken it down. Terrible timing, but hey, these things happen.”

You can apply for marriage tax allowance right here.

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