HMRC update: Britons who are married could reduce tax bill by up to £250 each year | Personal Finance | Finance
HMRC, formally known as Her Majesty’s Revenue and Customs, helps Britons to manage their tax bill each year, and millions will interact with the service regularly. The Revenue provides guidance to Britons on a wide range of issues, and its latest update could help thousands of people. Ahead of Valentine’s Day, the revenue has prompted married couples and those in a civil partnership to sign up for a tax break this coming year.
HMRC added: “Claims can also be backdated to April 2016, until April 5, 2021.
“After April 6, 2021, couples will only be able to claim back to the 2017 to 2018 tax year.”
Marriage Allowance was first introduced in April 2015 and has helped many couples to claim tax relief.
Angela MacDonald, HMRC’s Second Permanent Secretary, commented on the matter.
She said: “For some, a tax break will be a welcome source of extra cash during these difficult times.
Approaching HMRC directly, though, will ensure Britons receive a guaranteed 100 percent of their eligible entitlement.
Marriage Allowance is worth 10 percent of an individuals’ tax free Persona Allowance, but the maximum which can be transferred to a partner is dependent on the Personal Allowance during that tax year.
At present, the Personal Allowance is up to £12,500, however this is due to rise for the incoming tax year.
In the 2021/22 tax year, Income Tax Personal Allowance, alongside Higher Rate Threshold, will increase in line with the September Consumer Price Index (CPI) figure.
CPI is otherwise known as inflation, which means people can expect an increase to Personal Allowance of 0.5 percent.
From the new tax year, the Personal Allowance rate will rise to £12,570, which will have an impact on Income Tax bands going forward.