Martin Lewis Alerts Couples to Potential Loss of £13,830 Tax-Free Allowance
# Martin Lewis Warns Households May Miss Out on £13,830 Tax-Free Allowance
Martin Lewis highlighted on a recent podcast that many couples could unintentionally forfeit access to the £13,830 Personal Allowance due to slight income over the threshold. The financial expert emphasized that if either partner earns just £1 above this limit, it can negate their eligibility to claim the full allowance.
The ruling affects individuals in marriages or civil partnerships significantly. Lewis explained that couples where one partner is a non-taxpayer can benefit from the Marriage Allowance, allowing the lower earner to transfer a portion of their tax-free allowance to the higher earner. “So if you are listening and you are in a relationship where one of you is a non taxpayer and if you two are married or in a civil partnership, not just cohabiting, then you are entitled to use the marriage tax allowance. If you've been entitled to it for four years previously, you could be entitled to £1,250 and get a backdated payment of £1,000 as part of that,” he stated.
With the introduction of the Marriage Allowance, eligible households could retain up to £252 annually in tax savings. “Marriage Allowance keeps money in your pocket by reducing the amount of tax you and your spouse pay by up to £252 a year. You can check your eligibility and apply on GOV.UK. Search 'Marriage Allowance' to find out more,” stated The HMRC.
Lewis's insights serve as an important reminder for couples to review their tax statuses to ensure they are not missing out on crucial savings. Understanding the impact of this allowance could result in significant financial benefits for many households across the UK.
This report is for informational purposes only and is not financial advice.
