Save 432 Pounds In Tax Today.
As we are fast approaching Self-Assessment Deadline for tax year 2015/16 (due by 31st January, 2017), we thought we would remind you about an easy way to save tax.
This is a simple reminder to all those who are married or in a civil partnership that if one of you has earnings less than £11,000 per year (the Personal Allowance 2016/17), the limit where you start paying income tax, you can transfer unused allowance to your partner if their income is more than £11,000 i.e. they are tax payers.
This is called the Marriage Allowance.
How Marriage Allowance Works
You are allowed to transfer up to £1,100 of any unused personal allowance to your spouse/civil partner for last tax year 2015/16 and this tax year 2016/17.
If you were eligible for Marriage Allowance in the 2015 to 2016 tax year, you can backdate your claim to 6 April 2015 and reduce the tax paid by up to £432.
Who Can Apply to Transfer Marriage Allowance?
How to Apply for Marriage Allowance
The partner with the lowest income, looking to transfer their allowance MUST APPLY.
Simply, go to the gov.uk website at https://www.gov.uk/marriage-allowance/how-it-works
Follow the series of questions on
Use it or Lose It?
This is such a quick and easy way to save up to £220 in tax for 2016/17 and up to £432 in tax for both tax year 2015/16 (tax returns due next month) and the current tax year 2016/17.