If you are a married couple or living in a civil partnership, a marriage tax allowance is something you must be aware of. This provides you with the opportunity to claim tax relief as well. However, this is only possible if one of the partners or spouses is earning less than the amount of personal allowance in the UK. People tend to inquire about how to cancel marriage tax allowance as well.

For this cause, this comprehensive guide is based n the discussion related to everything that you need to know about what is marriage tax allowance, how it works in the UK, what is the criteria to qualify, how can you apply to get a marriage allowance, and how much you will get.

Talk to one of our intelligent and clever professionals to get your further queries about the marriage tax allowance. We will ensure to come up with the best possible solution.

What is a Marriage Tax Allowance?

Marriage tax allowance is a tax break in the UK that allows married couples or civil partners to transfer a portion of their personal allowance to their partner, which can reduce their tax bill. The marriage tax allowance is available to couples where one partner earns less than the personal allowance which is currently £12,570 and the other partner is in the basic rate tax band which is currently £12,571 to £50,270.

If eligible, the lower-earning partner can transfer a certain amount of their unused personal allowance to the higher-earning partner, which can reduce their tax bill to a certain extent per year. The allowance is not available to couples where both partners are in higher-rate or additional-rate tax bands.

How Does Marriage Allowance Work?

As mentioned earlier that the marriage allowance works by allowing couples to transfer a portion of their personal allowance to their partner, which can reduce their tax bill. If one partner earns less than the personal allowance and the other partner is in the basic rate tax band, the lower-earning partner can transfer the amount that is their unused personal allowance to the higher-earning partner. This can reduce the higher-earning partner’s tax bill by one per year. Couples can apply for marriage allowance online or by phone in the UK.

Who Qualifies for Marriage Allowance?

Couples in the UK can qualify for marriage allowance if they are married or in a civil partnership, one partner earns less than the personal allowance, and the other partner is in the basic rate tax band. This is currently £12,571 to £50,270.

If you are in a position to qualify and be eligible to get the benefits of the marriage allowance as a couple, you can even avail yourself the option of transferring a certain limit of your allowance to the partner who is the high-earning individual out of the two. This will help to maximise the benefits of the allowance amount.

How to Apply for a Marriage Tax Allowance?

You can apply for marriage allowance in the UK online or by phone. To apply online, you will need to have your National Insurance number and your partner’s National Insurance number, if you are married or in a civil partnership. You will also need to provide your bank account details and your partner’s details. To apply by phone, you can call HMRC.

Moreover, you will need to have your National Insurance number and your partner’s National Insurance number when you plan to finally make a call. HMRC will then check your eligibility and let you know if you can claim a marriage allowance or not in the current scenario.

How Much is the Marriage Tax Allowance?

The amount of the marriage tax allowance in the UK is up to £1,260 for the tax year 2022/2023. This is the amount that a lower-earning partner can transfer to their higher-earning partner’s personal allowance. If eligible, the higher-earning partner can then reduce their tax bill by up to £252 per year. It’s worth noting that the marriage tax allowance can only be claimed if the lower-earning partner has an unused personal allowance that they can transfer to their partner.

Is Marriage Allowance Taxable?

No, the marriage allowance is not taxable in the UK. If you are eligible for marriage allowance and you transfer part of your personal allowance to your partner, it will not be counted as income and will not be subject to tax.

Similarly, if you receive a marriage allowance from your partner, it will not be counted as income and will not be subject to tax. However, it’s worth noting that the allowance may affect other benefits and tax credits that you receive, so it’s important to check with HMRC if you are unsure or want to know about a specific scenario that you are facing currently.

How Do I Cancel My Marriage Tax Allowance?

To cancel your marriage tax allowance in the UK, you will need to contact HMRC. You can call them or write to them at the following address:

HM Revenue and Customs – Pay As You Earn
PO Box 1970
Liverpool
L75 1WX

When you contact HMRC, you will need to provide your National Insurance number and your partner’s National Insurance number. You should also explain that you want to cancel your marriage allowance and provide a reason for the cancellation. HMRC will then process your request and let you know if any further action is required.

The Bottom Line

Now that you have gathered a fair amount of information regarding how to cancel marriage allowance in the UK, we can bring the discussion towards wrapping up. The marriage allowance brings in the kind of benefits that allows a married couple or civil partners to enjoy an amount to a certain extent without paying any tax on it. However, there must be an understanding of what are the criteria to be qualified.

If you meet the required standard, you can get in touch with HMRC and discuss your matter. HMRC takes its time to work on your case and will get back to you if any further detail or step is required to complete it. We hope these few minutes of reading will help you develop a better understanding of marriage allowance and how it works in the UK for your benefit.

If you seek professional help to learn more about cancel marriage tax allowance, why wander somewhere else when you have our young and clever team of professionals at CruseBurke?

Disclaimer: All the information provided in this article on cancelling marriage tax allowance includes all the texts and graphics. It does not intend to disregard any of the professional advice.