Claiming Marriage Allowance
The marriage allowance allows couples to share part of their personal tax-free allowance in certain circumstances. The marriage allowance is available to married couples and those in a civil partnership where one partner has an unused personal allowance and their spouse/partner only pays Income Tax at the basic rate.
HMRC has published a press release to remind eligible taxpayers to apply for the allowance and benefit from a tax refund of up to £900. Although 3 million couples have already applied for the allowance, it is estimated that there are still a further 1 million married and civil partnered couples who are eligible for the allowance but have not applied.
For 2018-19, the lower earning partner can transfer up to £1,190 of their personal tax-free allowance to a spouse or civil partner.
Couples that have not yet claimed the allowance can backdate their claim as far back as 6 April 2015 if they meet the eligibility requirements. This could result in a saving of up to £662 for 2015-16, 2016-17 and 2017-18 and a further £238 for the current tax year. Couples have up to four years to claim backdated annual allowances.
An application for the marriage allowance can be made online or by telephone. The application must be made by the non-taxpayer who is transferring their allowance. To benefit as a couple, the non-taxpayer needs to earn less than their partner and have an income of £11,850 or less in 2018-19.
Posted by Cassey Nixon on
31st August 2018
Reporting Employee Changes
There are rules that businesses must follow when they are reporting employee changes. These changes must be sent to HMRC using a Full Payment Submission (FPS). The FPS is a submission that you need to make to HMRC every time you pay your employees and must be submitted on or before the usual date you […]
Planning A Christmas Party?
Now is the time that many businesses are planning their Christmas celebration for their staff, clients and prospective clients. The cost of a staff party or other annual entertainment is generally allowed as a deduction for tax purposes. If you meet the criteria written below, then there is no need to report anything to HMRC […]