Author: Gina Christodoulou
Date: 24/02/2021
You could potentially save up to £250 each tax year by transferring a portion of your Marriage Allowance to your spouse/civil partner.
Transferring the Marriage Allowance lets a spouse or civil partner transfer ten per cent of their Personal Allowance, currently £1,250 (£12,500 * 10%), to your husband, wife or civil partner.
You can benefit from the Marriage Allowance if:
- you’re married or in a civil partnership
- your spouse/civil partner earns below £12,500 (below their personal allowance)
- you yourself pay income tax at the basic rate i.e. your taxable income is over £12,500 but less than £50,000 (£43,430 in Scotland)
You may also be able to backdate your claim by up to four years (currently to include any tax year since 5 April 2016) in which you met the criteria above. The deadline for this is 5 April 2021.
It is quick and simple to apply directly through HMRC.
You could also save money by making your spouse a shareholder in your limited company. Speak to one of our SAIL advisors today to see how this could work for you as an effective way to release funds from your business or limited company in a tax efficient manner.