Martin Lewis' latest money hack could get married couples more than £1,000 in tax refunds
Married couples could be entitled to over a thousand pounds in cash, according to Martin Lewis.
The Money Saving Expert says there is an opportunity to reclaim hundreds of pounds in taxes, but that speed will be of the essence for those who have tied the knot. Marriage allowance is accessible to 2.1m couples in marriages or civil partnerships where one partner earns below the personal allowance threshold of £12,570. By transferring £1,260 of personal allowance to the spouse, the potential tax reduction is up to £252.
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Hide AdThis allowance can be claimed for the current tax year (2023/24) and the preceding four tax years (2019/20, 2020/21, 2021/22, and 2022/23). The corresponding tax breaks for those years were £250, £250, £252, and £252, respectively, totaling up to £1,256.
During the Martin Lewis Money Show Live, Lewis stressed the urgency of getting the ball rolling, particularly on tax claims for the 2019/20 financial year. The deadline for those claims is 5 April this year.
He said: "The backdated pay is by BACS or cheque. It's literally cash in your bank account. Almost everyone who is eligible for this should do it because you will gain."
Once the claim is made, there is no need for further applications. However, you must inform HMRC if eligibility ceases.
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Hide AdIn cases where the non-taxpayer's income falls between £11,310 and £12,570, the marriage tax allowance may not work in your favour due to the tax calculation method, meaning some couples may miss out.
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