Marriage Allowance 2015
12 April 2015, Advocates, Barristers, Charities, Companies, Employer, Musicians, Sole Traders
HMRC announced in February 2015 that registration had opened for the new marriage allowance tax break which enables couples to save the princely sum of up to £17.66 a month (£212 a year).
Marriage Allowance not just for the married
The new tax relief, which came into effect on 6 April 2015, allows a spouse or civil partner who has an annual income of less than £10,600 to transfer up to 10% of it (£1,060) to their partner as long as they are not a higher rate taxpayer. The Marriage Allowance is not to be confused with the more generous Married Couple’s Allowance, which is for the dwindling portion of the population where one of the couple was born before 6 April 1935.
How to register for the Marriage Allowance
To register for the Marriage Allowance you need to satisfy the following three criteria:
- you’re married or in a civil partnership
- you have an annual income of less than £10,600 – including pensions, savings and investments
- your spouse or civil partner has an annual income of between £10,601 and £42,385
- you were both born on or after 6 April 1935
If you do register for the new Marriage Allowance you will receive a new tax code from HMRC with an M or N at the end.
For more information on tax returns and employment, please contact Alterledger.
