Married couples are offered £252 a year: how to claim the tax allowance.

According to The Sun: Many newly formed couples lose the chance to receive £252 a year, and a mere 30-second test will show whether they are eligible.

The tax allowance for married couples allows you to transfer up to £1,260 of your personal tax allowance to your husband, wife, or civil partner.

British citizens have a personal tax-free income of £12,570, and if you earn above this amount, you must pay income tax at the basic rate of 20%.

However, if you are married or in a civil partnership, and your income is below the personal allowance, you can transfer up to 10% of it to your partner.

Your partner must be a basic rate taxpayer, meaning their annual income should fall between £12,571 and £50,270.

This can add up to £1,260 to your partner's personal tax allowance, reducing their tax liability by £252.

You can claim back taxes for the last four years, so the total benefit can exceed £1,000.

If you apply and meet the criteria, HMRC will automatically adjust your tax codes to account for the allowance transfer.

It is worth noting that out of the 4.2 million couples eligible for this allowance, only 2.1 million are claiming it, leaving another 2.1 million missing out on this opportunity.

How to apply for the married tax allowance

You can apply for the married tax allowance online at gov.uk, and the process is free.

Usually, the application is made by the partner with the lower income.

But if one of you has additional income, such as dividends or savings, you should decide who should apply.

If you have any doubts, call the income tax helpline — the number can be found on the gov.uk website.

Changes to your tax allowances will be backdated to the start of the tax year, which begins on April 6, if your application is successful.

To receive the allowance, you need to meet the following conditions:

• You are married or in a civil partnership.
• You do not pay income tax or your income is below the personal allowance (typically £12,570).
• Your partner pays income tax at the basic rate — that is, their income must be between £12,571 and £50,270.

You can also apply for a refund from April 6, 2021, for all the years you were eligible for the married tax allowance.

If you are only paying income tax at the basic rate and believe you have been wrongly denied the tax allowance, you can appeal directly to HMRC.

You and your partner will receive new tax codes reflecting the transferred allowance.

Your tax code will end in 'M' if you are receiving this allowance and 'N' if you are transferring it.

To contact an agent and explain the situation, you need to call the helpline regarding the married allowance.

You must cancel your married allowance application if you and your partner divorce or your income changes. This can be done online.

Do you have a financial problem that needs solving? Contact us by sending an email to [email protected].

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This tax allowance is an important financial tool for many couples in the UK, as it allows for significant savings. However, as seen, many couples do not take advantage of this opportunity, indicating a need for awareness and support from the government. Proper use of tax allowances can significantly ease financial burdens and help welcome shared plans for the future.