The marriage tax allowance stands as a valuable opportunity for married couples and civil partners to reduce their tax bill significantly.
Importantly, with the current tax year deadline approaching in April 2025, now is a crucial time to check if you’re eligible to claim the married tax allowance from HMRC.
Claims can be backdated for up to four tax years and taking action before the 5 April 2025 deadline ensures maximum benefit from this tax-saving opportunity.
If you can backdate a claim for previous four tax years the deadline for the 2020/2021 tax year is April 5 2025.
The total tax rebate from a four year claim can lead to a refund worth around £1242.
Basic rate taxpayers should check their eligibility with eligible couples potentially saving up to £1,260 by transferring personal allowances between partners.
Successful married tax allowance claims depend on meeting specific income requirements, gathering essential documentation, and submitting applications in the correct format to HMRC.
What is the Marriage Tax Allowance?
Marriage allowance permits the transfer of up to £1,260 from one partner’s personal allowance to their spouse or civil partner.
This amount represents approximately 10% of the basic personal allowance which is worth £12,570 for the 2024/25 tax year.
The transferred allowance functions differently from the standard personal allowance – rather than being deducted from taxable income, 20% of the transferred amount appears as a reduction in the recipient’s tax bill.
Who can Claim the Marriage Tax Allowance?
To qualify for marriage allowance, several conditions must be met. First, couples must be legally married or in a civil partnership.
Additionally, the lower-earning partner’s income must fall below their personal allowance which at the time of writing is worth £12,570 per person.
The higher-earning partner must be a basic rate taxpayer, meaning in the 24/25 tax year their income falls between £12,571 and £50,270.
For Scottish taxpayers, the income threshold differs slightly, ranging from £12,571 to £43,662.
Income Requirements for Married Tax Allowance
The basic criteria for marriage allowance centres around income levels of both partners.
The lower-earning partner must have an income below the personal tax allowance (which is £12,570 in the 24/25 tax year), effectively making them a non-taxpayer.
For the higher-earning spouse, their income must fall within specific brackets:
- In England, Wales, and Northern Ireland: Between £12,571 and £50,270.
- In Scotland: Between £12,571 and £43,662.
Several factors affect eligibility beyond basic income:
Pension contributions might alter qualification status. Should your salary exceed £50,270 yet pension contributions reduce your take-home pay below this threshold, you might still qualify.
Additional income sources need consideration. Where either partner receives income from dividends or savings, calculating who should make the claim becomes more complex.
Living arrangements do not typically affect eligibility. Partners residing abroad can still claim, provided they receive a personal allowance.
How to Submit Your Married Tax Allowance Claim Online or by Post
Submitting your marriage tax allowance claim through HMRC’s online portal offers the fastest route to securing your tax benefits.
Online applications receive confirmation within 24 hours, making this method particularly efficient as the April 2025 deadline approaches.
The application process offers two primary routes: online submission through the Government Gateway or postal application using form MATCF. For postal applications, applicants must:
- Download and save the MATCF form.
- Complete it electronically using Adobe Reader or print it.
- Send it to the specified address on page 3.
Proof of identity and marital status
HMRC requires both partners national insurance numbers (NINO) and verification of your marital status. The following conditions apply:
- Legal marriage or civil partnership documentation.
- Current marital status confirmation.
- Proof of ongoing partnership.
For couples where both partners submit self-assessment tax returns, the partner transferring the allowance should ideally file their return first.
This ensures HMRC properly records the claim before processing the recipient’s tax return.
For employed individuals or pension recipients, HMRC adjusts the PAYE tax code as though they received an extra £1,260 of allowances.
This adjustment appears automatically in the tax code with the letter ‘M’ used for the receiving partner and ‘N’ for the transferring partner.
Once approved, the arrangement continues automatically until HMRC receives notification of changes
It’s expected that you tell HMRC if you no longer meet the criteria to claim the allowance so they can adjust your tax code.
