Millions eligible for marriage allowance can claim backdated payments of over £1200

Millions of couples could be entitled to payments of over £1200 that they weren't aware of due to marriage allowance. The money is a form of tax break available to couples who are married or in a civil partnership, where one person is earning less than the personal income threshold of £12,750.

One mother was recently able to claim £250 for one year after her income dropped below the threshold whilst on maternity leave. The amount you can get in backdated claims depends on the tax year you are claiming for - you just need to fill in a simple form.

How does it work?

Marriage allowance lets you transfer £1,260 of your personal allowance to your husband, wife or civil partner. This reduces their tax by up to £252 in the tax year (6 April to 5 April the next year), as per gov.uk.

You are eligible for marriage allowance if all the following apply:

• you’re married or in a civil partnership
• you do not pay income tax or your income is below your personal allowance (usually £12,570)
• your partner pays income tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive marriage allowance

You cannot claim marriage allowance if you’re living together but are not married or in a civil partnership.

It will not affect your application for marriage allowance if you or your partner:

• are currently receiving a pension
• live abroad - as long as you get a Personal Allowance.

You can backdate your claim to include any tax year since April 5, 2018, during which you were eligible for marriage allowance.

To work out how much you will get you can use the government's marriage allowance calculator.

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How to apply for marriage allowance

You can apply for marriage allowance using the online process on the government's website.

If both of you have no income other than your wages, then the person who earns the least should make the claim.

If you cannot apply online, you can still apply for marriage allowance:

• through Self Assessmentif you’re already registered and send tax returns
• by writing to HMRC

It is possible to claim back hundreds of pounds worth of tax for the previous four tax years, currently 2018/19, 2019/20 2020/21 and 2021/22. The tax break is worth£238, £250, £250 and £252 during these years respectively, meaning you can get up to £1,242 in total, including the latest tax year of £252.However, you only have until April 5 to make a claim for 2018/19.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, believes millions are missing out, as per The Sun.

When money is tight – especially on maternity leave – this can make an enormous difference.

There could be over two million couples who qualify but aren’t claiming, so it’s worth checking whether some of this cash has your name on it.

Read more:

⋙ Millions to see DWP payments increase due to major change in April

Sources used:

- Gov.uk 'Marriage Allowance'

- The Sun 'TAX CUT I got £250 free cash while on maternity leave with little-known tax break – how you can too'