Millions of couples unaware they're entitled to a £250 cash boost from HMRC

Millions of couples are being reminded they may be eligible for a £250 tax break thanks to a little known law that lets you share your allowance with your spouse.

HRMC said married couples and those in civil partnerships may be eligible for a cash boost on what's said to be the most romantic day of the year.

More than 1.78million couples are already committed to the Marriage Allowance boost, but it is estimated more than 2million are missing out on up to £250 this year.

The Marriage Allowance lets people with an income of £12,500 or less, transfer up to £1,250 of their Personal Allowance to their husband, wife or civil partner – if their income is higher.

This reduces their tax by up to £250 for the 2020 to 2021 tax year. Claims can also be backdated four years to April 2015. After 5 April 2020, couples will only be able to claim back to the 2016 to 2017 year.

If a claim is backdated, the couple could receive up to £1,150 back.

The current tax year is the last chance for eligible couples to backdate their claim for 2015 to 2016 as the deadline for doing so is 5 April 2020.

Angela MacDonald, HMRC’s Director General for Customer Services, said: "Applying for Marriage Allowance is a quick and easy way for married couples and people in a civil partnership to have £250 or more put back in their pockets.

"It’s fantastic to see so many couples have already put a few minutes aside to apply, and we hope many more will sign up this Valentine’s Day to take advantage of this tax relief."

Dan De Arriba, 34, an HR adviser from Sheffield, is one of those already signed up. He said: "My wife Jie fell pregnant while she was finishing her PhD, so she did not receive any maternity leave payment.

"I came across Marriage Allowance on GOV.UK. It helped us financially by transferring some of the tax-free allowance from Jie to me while she was looking after our son and I was working.

"It helped us by saving over £200 a year at a time when it was really needed and the process of applying was very easy. I strongly recommend it to anyone in a marriage or civil partnership."

Customers in England, Wales and Northern Ireland can benefit from Marriage Allowance if all the following apply:

• you’re married or in a civil partnership
• you do not pay income tax or your income is below your Personal Allowance (usually £12,500)
• your partner pays Income Tax at the basic rate between £12,501 and £50,000

For customers in Scotland, the same criteria applies, except your partner must pay Income Tax at the starter, basic or intermediate rates between £12,501 and £43,430.

Couples can find out more information and  apply for Marriage Allowance on GOV.UK here.