We have been asked a few times recently about a simple tax-saving idea called Marriage Allowance.
If you or your partner are not working, or do not use all of your allocated personal tax allowances (currently £12,570 PA), you can make an election to transfer £1,260 of the personal allowance to your higher-earning partner. This will mean that one will get £13,830 tax-free personal allowance and the other will receive only £11,310. The highest person's earnings must be between £12,571 and £50,270.
Once the transfer has been made it will instantly save them 20% of £1260, which is £252. The transfer of your personal allowance must be made by the Transferee (the lower earner), and it is very easy to do. Please make sure you have both people's national insurance numbers and some ID. Information on how to make a transfer can be found here.
You are able to backdate marriage allowance back to 2019/2020 and subsequent years, regarding that you were eligible during those years. Providing that you have a government gateway ID you can use HMRC's online facility to apply. If you are unable to make a claim online, contact HMRC by phone or post
At Short and Sons, we are still offering £50 referrals to new and existing clients. The £50 bonus is paid once the new client has completed their first return and credited to your account for you to use when completing your next return. Please make sure they mention your name when joining up!
Join up forms and links to Shortandsons.co.uk can be requested by emailing sales@shortandsons.co.uk - have a great day!
Jason Short