Couples only have till April next year to claim the full marriage allowance rebate available to them, dating back to the first tax year the relief came into force in 2015/16.
This falls into the standard timeline of a four-year backdated period to claim any type of tax refund from HMRC. This means that if you were to miss the 5th April 2020 deadline next year, your claim for the tax year 2015/16 will be closed and you would only be eligible to request a refund from the 2016/17 tax year onward only.
Don’t miss out, find out if you are eligible to claim the marriage allowance and how to make a claim.
What is the marriage allowance?
Not to be confused with the married couple’s allowance, which is only available to couples born before 6 April 1935, the marriage allowance allows you to transfer 10 percent of your personal allowance to your spouse or civil partner in a given tax year as long as you are both basic rate tax payers or if one of you is a basic rate tax payer and the other is not employed. If either scenario is true, the 20% marriage allowance is given as a reduction in your spouse or partner’s tax bill.
The marriage allowance tax savings for each tax year you can claim for, from the date at which the allowance was first introduced in the 2015/16 tax year, is given below:
Year |
Personal allowance |
10% allowance |
Maximum savings |
| 2018/19 | £11,850 | £1,190 | £238 |
| 2017/18 | £11,500 | £1,150 | £230 |
| 2016/17 | £11,000 | £1,000 | £220 |
| 2015/16 | £10,600 | £1,060 | £212 |
If you therefore make a claim for marriage allowance for the current tax year 2019/20 and you do so before the deadline of 6 April 2020, you can claim each of the year’s maximum savings noted above for the backdated years to tax year 2015/16, and you will receive payment as a lump sum from HMRC. Your marriage allowance claim will continue each tax year thereafter automatically and until such a time as either of the couple’s circumstances change, with the onus on the couple to inform HMRC of any change in circumstances.
If a claim is made after 6th April 2020 for the current tax year, the claim will only relate to this tax year and a new claim will need to be put in place for the following tax year, and before the 6th April to ensure it continues thereafter. You will also only receive a backdated rebate payment from tax year 2016/2017 onwards if you make a claim after the deadline of 6 April 2020.
How do I make a claim with HMRC?
There have been cases of fraudsters who offer to manage your claim with HMRC on your behalf, but this is usually at a dis-proportionally large fee. The claim process with HMRC is in fact very straightforward so this approach should be avoided.
It is very easy to make a claim online via HMRC’s website. Alternatively, you can call or write to HMRC to make a claim. You will need your National Insurance Number and proof of identity, such as passport number, to set-up an online account with HMRC if you do not have one already. Please also have your spouse’s National Insurance Number to help ensure a smooth claim process.
Currently HMRC give a 14-week timeline to process your claim and pay out, with an option to transfer funds to your bank account or pay by cheque.
For ongoing marriage allowance claims versus backdated refunds, you and your spouse’s tax code will change to reflect the allowance being used. If you are self-employed, your claim for marriage allowance will be looked at on completion of your Self-Assessment Tax Return.
How can we help?
If you require further advice on the marriage rebate allowance, please contact us to help you through the process as tax efficiently as possible.
Often there is a requirement for forward tax planning to take full advantage of the tax reliefs available to you and your business. We strongly recommend you speak with a tax and accounting specialist like Southside Accountants, your local accountants in Wimbledon and London. Please contact us to see how we as your accountants can help you run your business effectively.
Southside Accountants provide sole trader and limited company services, including tax return services, to small businesses in the UK and are a Xero Certified Advisor.
Written by Shaima Todd.
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