Are you struggling to find the perfect gift for your better half this Valentine’s Day? This year, instead of splashing the cash on a dozen red roses or expensive chocolates, why not give your loved one the gift of a reduced tax bill?
A Cramlington-based financial advice firm is encouraging its clients to realise the full worth of their marriage vows and take advantage of HMRC’s marriage allowance.
Managing director at Explore Wealth Management, Stephen Sumner, explained:
“Whenever I meet with a new client, one of the first things I check for them is that the correct level of income tax is being deducted from their monthly income. More often than not I find that married couples are not claiming the marriage allowance.
“The marriage allowance is a little-known tax allowance introduced in 2015 as a marriage incentive, which allows anyone earning below the £11,000 threshold for basic rate income tax to transfer some of their tax free personal income allowance to their spouse.”
Despite a number of advertising campaigns to promote the initiative by HMRC, incredibly, of the 4.2 million couples in the UK who could benefit from this tax saving, only 1 million couples have actually applied.
“Naturally, there are certain criteria you need to meet in order to qualify for the allowance,” Stephen said.
“So long as the applicant is earning less than the threshold for basic income tax and the applicant’s partner earns a salary within the 20% basic rate income tax band (ie currently earning between £11,000 and £43,000), they could look to reduce their tax bill by £220 in 2017.
“Better still, if you qualify for the allowance, you may be able to back-date a claim for the previous tax year meaning you could be entitled to a refund of up to £432.”
So, what do you have to do to claim your refund?
If you’re married or in a civil partnership (unfortunately, cohabiting with a partner doesn’t count) visit https://www.gov.uk/marriage-allowance and simply follow the instructions to find out how you could benefit from the marriage allowance.
Explore Wealth Management is one of the largest, independently owned financial advice companies in the UK. The company prides itself on its straight-talking, honest approach to financial planning, and was recently voted amongst the top 250 IFA companies in the country in an independent survey conducted by VouchedFor.
For further information about the marriage allowance or for financial advice on a wide range of subjects from investments and savings to retirement planning, call us today on 0191 285 1555.