The HMRC Marriage Tax Allowance is a tax perk that allows one partner in a marriage of civil partnership to transfer up to 10% of their unused personal allowance to another, meaning that person can benefit from some additional tax free earnings.

HMRC Marriage Tax Allowance 2017/2018

Up to 10% of an individuals personal allowance can be transferred to their partner so for 2017/2018 the marriage tax allowance is £1,185.  This results in a maximum tax saving of £230 (£1,185 x 20%)

How does HMRC Marriage Allowance Work

Claiming Backdated HMRC Marriage Tax Allowance

If you were eligible for the HMRC marriage allowance in 2015/2016 when it was introduced, then you can actually make a backdated claim for up to four years.

That means that as of today you can potentially claim over £900 of tax free money as long as you and your partner met the above criteria for each tax year.

HMRC Marriage Tax Allowance Summary

Tax Year Personal Allowance 10% Transfer Tax Saving at Basic Rate
2018/2019 £11,850 £1,185 £237
2017/2018 £11,500 £1,150 £230
2016/2017 £11,000 £1,100 £220
2015/2016 £10,600 £1,060 £212

Self Employed Tax Tip: Marriage Allowance

How to Claim the HMRC Marriage Allowance

If you are employed you can claim for the Marriage Tax Allowance HERE.  Alternatively you can call HMRC on 0300 200 3300 for help.  They will arrange for an adjustment to be made to you or your partners tax code for the personal allowance transfer. It can take a couple of months to take effect, so don’t delay in getting the process underway.

If you are self employed and pay tax through the self assessment system, you can claim your entitlement to the Marriage Allowance on your tax return. Find out more about the HMRC Marriage Allowance when you are self employed HERE>>

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.