Posted on October 25th, 2016 | Categories - News
New figures show that millions of people are paying too much tax, because they are failing to claim the married couples allowance.
HMRC (HM Revenue & Customs) has revealed that only one million married couples have claimed the new allowance, out of the 4.2 million who are eligible.
The allowance was introduced in April 2015 and is worth £220 in the current tax-year.
How does it work?
The system works by allowing either a husband, wife, or civil partner to transfer part of their unused Personal Allowance; the amount they can earn before they pay tax.
The maximum amount which can be transferred is £1,100, saving income tax of up to £220.
To qualify, one of the married couple needs to be earning less than £11,000 in the current tax-year; whilst the other must be a basic rate tax-payer.
All is not lost!
Experts are divided as to why married couples are failing to claim the allowance. Some believe it is potentially too complex. Others are concerned that the allowance is not widely known about.
If you meet the criteria you can backdate your claim to the 2015/16 tax-year. This would result in a maximum saving of £432 for the current and previous tax-year.
Click here to learn more and make a claim.