Could your marriage save you money?

Many people don't take advantage of the marriage allowance... it's pretty simple to claim.

If you’re married and one of you is a 20% (basic rate) taxpayer and other is earning less than tax free allowance, you are eligible to transfer up to £1250 (the amount you're able to earn tax free) of tax free allowance to your spouse / civil partner.

Who is eligible?

One of you must be earning below the threshold. The other must be a 20% basic rate payer That's pretty much it... really simple! 

For example, 

Jude and Cam have been married for five years. Jude works part time as a marketing consultant, whilst Cam works full time running a hairdressing business. 

Cam takes home £32000k each year and is a 20% basic rate tax payer. 

Jude take home £7000 per year, not using the full £12500 personal allowance. 

Jude can therefore transfer £1250 of their personal allowance over to Cam, meaning that Cam can now take £13750 tax free.

Happy days. 

You can also claim back for previous years. You can get a rebate by back-claiming by up to four years.

If you would like any help with this - let us know.

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