The Marriage Allowance Refund: How Can It Be Claimed?

A lot of people don’t know that the marriage allowance exists. It’s been in effect since the 6th of April, 2015. Certain couples are just gaining awareness about the marriage allowance nowadays, years later. Luckily, it’s possible to backdate claims for up to four years.

Marriage Allowance: What Is It?

With the marriage allowance, an individual will be able to transfer 10% of their personal allowance (£12,570 in 2022/23, meaning £1,260 is the amount transferred) to their civil partner or spouse. 

One-fifth (20%) of the allowance is given as a reduction in the tax bill of the recipient. It can result in up to a £252 tax saving for the couple in question. That said, there are criteria that need to be met.

Why Would Someone Be Due A Refund?

Claiming to transfer the personal allowance for 2018/19 and the following tax years can be done even if that actually didn’t occur at the time. However, the 2015/16, 2016/17 or 2017/18 tax years no longer qualify for a claim of this nature to be made under them.

Getting the full benefit will only happen if the person giving up the allowance isn’t actually using it, as well as the receiving person being able to use the tax reduction. 

Couples can then make tax savings such as:

• For the 2021/2022 tax year, the personal allowance was £12,570. That’s a maximum of £252 in tax savings since £1,260 can be transferred.
• For the 2020/21 tax year, the personal allowance was £12,500. That’s a maximum of £250 in tax savings since £1,250 can be transferred.
• For the 2019/20 tax year, the personal allowance was £12,500. That’s a maximum of £250 in tax savings since £1,250 can be transferred.
• For the 2018/19 tax year, the personal allowance was £11,850. That’s a maximum of £238 in tax savings since £1,190 can be transferred.

It’s essential, of course, to meet the criteria for each year that the allowance is applied for.

Claiming the Refund: How Can It Be Done?

The claim needs to be made by the person giving up the allowance. Part of doing that can also involve claims dating back to earlier years. 

An online facility that’s quite straightforward to get this done can be found easily on GOV.UK. It requires the National Insurance number and proof of identity, like giving details from payslips, P60 or child benefit. The civil partner or spouse’s National Insurance Number is also key here.

Inability to claim online can be done through writing to HMRC or calling them at 0300 200 3300 in order to make a claim. Prior years will mean a refund cheque in the mail; the current tax year and others going forward will see both partners’ tax codes being amended. 

Self-employed individuals and others who are in Self Assessment will see the marriage allowance handled as part of the Self Assessment tax return.

Conclusion

The marriage allowance is a little-known benefit that was introduced in April of 2015. It allows an individual to transfer a certain part of their tax allowance to their spouse or civil partner. The claim needs to be done by the person giving their allowance up, either online or by writing to HMRC or telephoning them.

Need to figure out your marriage tax refund? Check out the Tax Refund Calculator today! It’s a great way to determine whether you’re due a HMRC tax refund.