Marriage Allowance – who can get it and how do they do it?

As an Umbrella company employee, if you are married or in a civil partnership, you may be able to benefit from a government tax break known as the marriage allowance.
It can save you more than £600 as a couple over the tax year yet, unbelievably, only half of eligible couples have claimed it.

Work out how much you could save with HMRC’s marriage allowance calculator

We have put together a quick guide of what it is and who can claim it. All figures quoted are calculated using allowances and thresholds for the 2017 /18 tax year.

What is it?

Marriage Allowance lets couples transfer a proportion of their personal tax allowance between them. The lower earner must earn less than the £11,500 personal tax threshold, so a non-taxpayer. They can then transfer their unused personal allowance to their partner.

Eligibility criteria

You can apply for marriage allowance if all of the following apply:

  • You are married or in a civil partnership (living together does not qualify)
  • Both of you were born on or after 6th April 1935
  • The lower earner must be earning less than £11,500, so therefore not paying any personal income tax
  • The other party needs to be a basic rate taxpayer (couples who are in the higher or additional rate tax band are not eligible)
  • You can still apply if either you or your partner lives abroad or is currently receiving a pension.

How to apply

The person who will be transferring their allowance, ie. the lower earner should apply for the allowance. You can do this online with HMRC. You will need an acceptable means of ID as well as you and your partner’s National Insurance numbers.

Backdate your claim

If you have only just found out about marriage allowance, and you would have been eligible in the 2015/16  and 2016/17 tax years, you can backdate your claim to 6th April 2015 (subject to relevant allowances and thresholds). Hey presto – nice tax rebate!

What to do if your circumstances change

If your personal circumstances change, for example if you get divorced, you get your civil partnership dissolved or your partner dies, you can cancel your marriage allowance here.
If you or your partner’s income changes, contact HMRC to see if you are still eligible for marriage allowance and that it is still beneficial to you as a couple.

Contact us if you or your spouse or civil partner is employed by Liquid Friday, and you think you might be eligible for marriage allowance.


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