Marriage Allowance: How to Lower Your Tax Bill

The UK tax system offers various reliefs and allowances to help individuals keep more of their hard-earned money. One of the most underutilised yet powerful tools for married couples and civil partners is the Marriage Allowance—a simple way to legally reduce your tax bill.

At Black & White Accounting, we’re passionate about helping our clients take advantage of every tax-saving opportunity. Here’s everything you need to know about Marriage Allowance, how it works, and why you should check if you’re eligible right now!

A Brief History of Marriage Allowance

The Marriage Allowance was introduced by the UK government in April 2015 as a way to support low-income couples by allowing a portion of the lower-earning partner’s tax-free personal allowance to be transferred to their higher-earning spouse. The goal? To reduce the amount of tax paid by married couples and civil partners where one partner earns significantly less than the other.

While many eligible couples have claimed it, millions of UK couples still miss out on this simple tax break every year—don’t be one of them!

What is Marriage Allowance?

Marriage Allowance allows one spouse or civil partner to transfer up to 10% of their Personal Allowance to the other, reducing the total tax paid by the higher earner.

For the 2024/25 tax year, the standard Personal Allowance (the amount you can earn before paying income tax) is £12,570. That means a lower-earning spouse can transfer up to £1,260 of their unused allowance to their partner.

This results in a tax saving of up to £252 per year—and even better, you can backdate claims for up to four years, potentially saving over £1,000!

Who Can Claim Marriage Allowance?

To be eligible for Marriage Allowance, you must meet the following criteria: ✅ You’re married or in a civil partnership (cohabiting partners do not qualify). ✅ One partner earns less than £12,570 per year (below the Personal Allowance threshold). ✅ The higher-earning partner earns between £12,571 and £50,270 (basic rate taxpayer in England, Wales, and Northern Ireland) or up to £43,662 in Scotland. ✅ Both partners must be born after 6 April 1935 (those born before this may qualify for Married Couple’s Allowance, a different tax relief).

How Does Marriage Allowance Work?

📌 Example 1 – A Couple Maximising Marriage Allowance

• Sarah earns £10,000 per year (below the Personal Allowance threshold).
• David earns £30,000 per year (basic rate taxpayer).
• Sarah transfers £1,260 of her unused allowance to David.
• David’s taxable income is reduced, resulting in a £252 tax saving for the year.

📌 Example 2 – Backdating Claims

• If Sarah and David haven’t claimed Marriage Allowance for the last four years, they can claim for past tax years, potentially saving over £1,000 in total!

How to Apply for Marriage Allowance

Applying is quick, easy, and free via HMRC’s website. Here’s what you need to do:

1️⃣ Check Your Eligibility – Ensure one partner earns below £12,570, and the other is a basic rate taxpayer. 2️⃣ Apply Online – The lower-earning partner must make the application through the HMRC website. 3️⃣ HMRC Adjusts Your Tax Code – The higher earner’s tax code will change (usually to ‘M’ for them and ‘N’ for the lower earner). 4️⃣ Enjoy the Tax Savings!

Once approved, the allowance automatically renews each tax year, so you don’t need to reapply unless your circumstances change.

Other Interesting Facts About Marriage Allowance

🔹 You Can Claim After a Partner Has Passed Away – If your spouse or civil partner passed away within the last four years, you may still be able to backdate and claim Marriage Allowance. 🔹 It Won’t Affect Your Tax Refunds – If you’re due a tax refund, Marriage Allowance won’t stop you from receiving it. 🔹 It’s Not the Same as Married Couple’s Allowance – If one partner was born before 6 April 1935, they may qualify for a more generous tax break instead. 🔹 Even If You’re Self-Employed, You Can Claim! – Marriage Allowance applies to both PAYE and self-employed individuals.

How Black & White Accounting Can Help

At Black & White Accounting, we help our clients reduce tax bills and maximise savings. Here’s how we can assist:

✔️ Check Your Eligibility & Apply on Your Behalf – No stress, no hassle—we handle the entire process. ✔️ Backdate Claims for Up to 4 Years – We ensure you get the full amount you’re owed. ✔️ Review Your Tax Code for Maximum Savings – Making sure you’re benefiting from all available tax reliefs. ✔️ Ongoing Tax Planning Support – We help couples and families optimise their tax efficiency year after year.

Don’t Leave Free Money on the Table!

Marriage Allowance is a simple and effective way to reduce your tax bill, yet millions of eligible couples still aren’t claiming it.

📞 Get in touch with Black & White Accounting today—we’ll check if you qualify, handle your claim, and ensure you don’t miss out on valuable tax savings!

💰 It’s time to make your money work for you!