HMRC update: Millions missing out on Marriage Tax Allowance – could you be owed £1,200?

Martin Lewis reveals how to claim marriage tax allowance

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Couples who are married or in civil partnerships are being reminded by HMRC to use the allowance now before it’s too late. It can shave hundreds of pounds off someone’s annual tax bill and can be backdated four years.

News that millions of people might be able to reduce their tax bill by taking advantage of the marriage tax allowance could come as a welcome relief.

Earlier this year, chancellor Rishi Sunak confirmed that for the coming tax 2021/22 tax year, personal allowance would be £12,570 and marriage allowance would be £1,260.

That means that individuals can transfer upwards of £1,260 of their own personal allowance to their husband, wife or civil partner.

This will reduce their tax payment by up to £252, but as they can also backdate it four years before this current one they could also potentially be able to save £1,220.

However, there is a catch and not all married couples will be able to benefit.

The criteria states that one person needs to be a non-taxpayer while the other person will be paying the basic 20 percent rate of tax.

Couples where one person is earning £12,570 or less, while the other takes home between £12,571 and £50,270 should qualify.

In addition, it’s also only available to couples born on or after April 6, 1935.

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How do I use my marriage tax allowance?

The person who doesn’t pay tax will need to apply for the marriage tax allowance.

People can search for marriage allowance via the Government website for details of how to apply.

Alternatively they can call the helpline on 0300 200 3300.

There’s only one month left for Britons to file their tax return or they could face a £100 fine.

HMRC figures show that five million people leave it until January to get their affairs in order.

What’s more, one fifth of those (one million) miss the deadline and end up being slapped with a fine.

Meanwhile, people are also being reminded not to forget their COVID-19 grants when it comes to inputting their income.

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The warning from HM Revenues and Customs (HMRC) comes as figures show more than 2.7 million customers claimed at least one Self-Employment Income Support Scheme (SEISS) payment in 2021.

As these grants are taxable, failure to declare them on their tax return could land Britons in trouble.

HMRC has been reminding self-employed people and business owners that it’s important they make sure any SEISS or other COVID-19 support payments have been reported correctly.

Search ‘help with Self Assessment’ on GOV.UK to find out more.

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