Martin Lewis: Money Saving Expert on ‘lucrative’ way for married Britons to get tax refund | Personal Finance | Finance
Martin Lewis, Money Saving Expert, was back on the small screen this week, offering the latest money saving tips and tricks to Britons. Covering a wide range of topics, Martin turned his attention to a tax refund available for Britons in a married couple or civil partnership, after someone shared their own personal experience. A viewer, Pat, explained her success story to Martin via social media, and it could help others benefit.
HMRC officially states the scheme will let eligible people transfer £1,260 of a personal allowance to a husband, wife or civil partner.
Under current rules, this means a reduction of tax by up to £252 each tax year – which runs from April 6 to April 5 the next year.
However, Martin highlighted a slight change to the system, while urging people to take action on the matter.
He concluded: “The past years have been done by cheque, this year will be done by tax code change.
“It’s very lucrative, if you’ve not done that there’s over 1million people who aren’t doing it.
However, for the individual who is transferring the allowance, a tax code will end in ’N’.
Britons can also expect their tax code to change if they are employed, or receiving a pension.
Individuals will still be able to claim even if they are receiving a pension, which means older couples can even benefit.
In addition, those who live abroad could also apply for Marriage Allowance, as long as they actually receive a Personal Allowance.
However, HMRC does state that if a person or their partner was born before April 6, 1935, they could benefit more by applying for a different scheme.
This is known as Married Couple’s Allowance, and can reduce a tax bill by between £353 and £912.50 per year.
It is worth noting, though, that a claim for Marriage Allowance and Married Couple’s Allowance at the same time cannot be actioned.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip