Married couples and civil partners in the UK can claim up to £252 per year in tax savings through the Marriage Allowance. Even better, those who haven’t claimed before can backdate their claim for up to four tax years, potentially receiving a refund of up to £1,260.
However, time is running out—the deadline to claim for the 2020/21 tax year is 5 April 2025. If you miss it, you lose the ability to claim for that year forever.
This guide will explain how the Marriage Allowance works, who qualifies, how to claim, and how to maximize your refund before the deadline.
Key Details: Marriage Allowance at a Glance
| Feature | Details |
|---|---|
| Benefit Name | Marriage Allowance |
| Maximum Annual Saving | £252 per year |
| Backdating Available | Yes, up to 4 previous tax years (max total £1,260) |
| Deadline to Backdate 2020/21 Tax Year | 5 April 2025 |
| Eligibility Criteria | Married/civil partners, one partner earning below £12,570, other earning between £12,571-£50,270 |
| Application Process | GOV.UK |
| Potential Refund | Tax refund directly from HMRC |
| Professional Insight | Useful for low-income households and basic rate taxpayers |
If you’re eligible, this is essentially free money—and with rising living costs, missing out on up to £1,260 would be a mistake.
What Is the Marriage Allowance?
The Marriage Allowance is a UK government tax break that allows a lower-earning spouse or civil partner to transfer up to £1,260 of their unused Personal Allowance to their higher-earning partner.
This transfer reduces the higher earner’s tax bill by up to £252 per year. If you haven’t claimed before, you can backdate your claim for up to four years, meaning some couples could receive a lump sum refund of £1,260.
Why Is There a Deadline?
The UK tax year runs from 6 April to 5 April, and the 2020/21 Marriage Allowance claim expires on 5 April 2025.
Once the deadline passes, you permanently lose the right to claim for that year.
Since the process takes only a few minutes, it’s worth applying now rather than missing out on hundreds of pounds.
Who Is Eligible for Marriage Allowance?
Eligibility Requirements
To qualify for the Marriage Allowance, you must meet the following conditions:
- You Must Be Married or in a Civil Partnership
- Unmarried couples living together do not qualify.
- Income Requirements
- The lower-earning partner must have an income below £12,570 (the Personal Allowance threshold).
- The higher-earning partner must earn between £12,571 and £50,270 (basic rate taxpayer).
- UK Residency
- Both partners must be UK residents for tax purposes.
- No Higher-Rate Taxpayers
- If the higher earner makes over £50,270, they are not eligible.
Real Example: How Much Could You Get?
Let’s look at a real-life scenario to understand the savings potential.
Emma and John’s Situation:
- Emma earns £10,000 per year (non-taxpayer)
- John earns £40,000 per year (basic rate taxpayer)
Since Emma isn’t using her full Personal Allowance, she can transfer £1,260 to John, reducing his tax bill by £252 per year.
What If They Backdate Their Claim?
If Emma and John haven’t claimed before, they can backdate for four years:
| Tax Year | Potential Saving | Deadline to Claim |
|---|---|---|
| 2020/21 | £252 | 5 April 2025 |
| 2021/22 | £252 | 5 April 2026 |
| 2022/23 | £252 | 5 April 2027 |
| 2023/24 | £252 | 5 April 2028 |
That’s a total refund of £1,260 straight from HMRC—money they otherwise would have missed out on.
How to Claim Marriage Allowance
The process is quick and straightforward. Here’s how to do it:
Step-by-Step Guide
- Visit the Official Website
- Go to the GOV.UK Marriage Allowance page.
- Check Eligibility
- Use the online tool to confirm you qualify.
- Gather Necessary Details
- Both partners’ National Insurance numbers.
- Identification documents (passport, P60, or recent payslip).
- Submit the Application
- The lower-earning partner applies to transfer their allowance.
- Wait for Confirmation
- HMRC adjusts the tax code and processes any refunds.
Once approved, the tax reduction will apply automatically every year unless circumstances change.
Professional Insights: Who Benefits the Most?
Certain households stand to gain the most from the Marriage Allowance.
1. Low-Income Households
Couples where one partner is unemployed, works part-time, or earns below £12,570 will benefit significantly.
2. Stay-at-Home Parents or Carers
If one partner is a full-time parent or caregiver, the Marriage Allowance can help reduce the tax burden on the working partner.
3. Basic Rate Taxpayers
Households where the higher earner falls below the £50,270 threshold will see the biggest tax savings.
4. Retired Couples
If one spouse has a small pension or part-time income, they too could benefit from the allowance.
Additional Tips to Maximize Savings
- Reassess Every Year
- Income levels fluctuate—check eligibility annually.
- Inform HMRC of Changes
- If the lower earner starts making over £12,570, update HMRC to avoid incorrect tax codes.
- Use HMRC’s Tax Calculator
- Estimate potential savings using HMRC’s online tools.
- Act Fast to Claim Backdated Payments
- The 5 April 2025 deadline is approaching—apply now to secure your 2020/21 refund.
The Marriage Allowance is one of the easiest ways for couples to save money on their taxes. If eligible, you can claim up to £252 per year and backdate up to four years for a £1,260 refund.
With only one week left to claim for 2020/21, now is the time to act before the opportunity is lost forever.
For more information and to apply, visit GOV.UK today.
FAQs
How long does the application process take?
It typically takes a few minutes to apply, and HMRC processes claims within a few weeks.
What if my partner and I earn similar salaries?
You likely won’t benefit unless one of you earns below £12,570.
