Little known tax break could save Brits £250 a year with millions missing out

Brits could receive up to £252 by reducing their tax bill through a key allowance.

Experts reckon there are millions of people in the UK who could be missing out on the benefit.

It comes after Prime Minister Boris Johnson revealed his plans to raise National Insurance by 1.25% next year.

Shareholders will also be taxed on dividends to help raise the £12billion a year extra for the NHS and social care sector.

But the Marriage Tax Allowance could help couples save around £250 a year.

One of the couple must be a basic tax taxpayer and the other a non-taxpayer to qualify for the benefit.

Your personal allowance is the amount of money you can earn without it being taxed every year, for 2021/22 this is £12,570.

You could receive a few hundreds per year

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The marriage allowance lets a civil partner or spouse transfer 10% of their personal allowance to their higher earning partner.

Being able to transfer over your personal allowance means that you and your partner can receive a tax break of £252 this year.

Couples can also backdate their claims for any of the previous tax years.

To be eligible you’d need to be married or in a civil partnership, as well as a number of other factors.

If you don’t pay Income Tax or if your income is below your Personal Allowance, usually £12,570, you could be eligible.

And if your partner pays Income Tax at the basic rate, if their salary is between £12,571 and £50,270.

You can’t claim Marriage Allowance if you’re living together but you’re not married or in a civil partnership.

To apply you’ll need to fill out a form on the GOV.UK website where you’ll need your National Insurance number and a form of ID.

Alternatively you can call the HMRC helpline on 0300 200 3300.


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