Married Couples Face Tight Deadline for £1,260 Tax Allowance Claim
Married couples across the UK are being urged to act swiftly, with a critical deadline of April 5 approaching to claim the Marriage Allowance, which could result in a lump sum payment of up to £1,260. BBC Morning Live finance expert Laura Pomfret has emphasised that eligible couples have only a couple of weeks to apply, describing it as a "job for this week or next week" to avoid missing out on significant financial benefits.
Understanding the Marriage Allowance Scheme
The UK Marriage Allowance permits lower-earning spouses or civil partners to transfer £1,260 of their personal tax allowance to their higher-earning partner. This transfer can reduce the couple's annual tax bill by as much as £252. To qualify, one partner must earn below the Personal Allowance threshold, typically £12,570, while the other must be a basic rate taxpayer with an income up to £50,270.
Laura Pomfret explained to hosts Greg Rutherford and Gaby Roslin: "The good news is it really doesn’t take that long to apply if you’re eligible, and it could mean £1,000 that you could get back from the government. This is the marriage tax allowance, which lets you transfer some of your personal tax allowance to your partner to reduce the amount of tax they pay on their income."
Key Eligibility Criteria and Financial Impact
Eligibility requires that the higher earner falls within the basic tax band, with taxable income between £12,571 and £50,270. Both partners must be married or in a civil partnership; cohabiting couples are not eligible. Additionally, both individuals must have been born after April 6, 1935, with those born before potentially qualifying for the Married Couple's Allowance instead.
The financial mechanics are straightforward: each partner has a personal allowance of £12,570. If one earns less than this threshold, they can transfer £1,260 to their higher-earning spouse, increasing the latter's allowance to £13,830. Consequently, the lower earner's allowance decreases to £11,310, but this transfer reduces the couple's overall tax liability. Pomfret noted: "It can reduce your partner’s tax by up to £252 per year, and you can backdate it four years, leading to that £1,260 lump sum. However, you need to act quickly before the tax year ends on April 5."
Application Process and Backdating Opportunities
Applications can be made easily via the government website or by downloading a form from gov.uk and submitting it by post. Successful claims will be backdated to the start of the current tax year, and by using the postal method, couples can backdate payments for up to four previous years. This means eligible applicants could receive £1,260 for the 2025/26 tax year plus additional amounts for prior years.
Pomfret highlighted important considerations: "Both parties must consent to the claim, as one individual is transferring their allowance. The lower earner should complete the form and send it to HMRC. Even separated couples can claim if they were eligible during the years in question, and those whose partners have passed away since April 5, 2021, can still apply by calling the income tax helpline on 0300 200 3300."
Urgent Call to Action for Eligible Couples
With the deadline looming, Pomfret stressed the urgency for couples to check their eligibility and apply promptly. "£1,000 is a lot to many people," she said, urging them to take advantage of this "hack" if they qualify. The scheme offers a valuable opportunity for tax savings, but time is of the essence to secure the backdated lump sum before the new tax year begins on April 6.
