Banks Sheridan is encouraging couples who are either married or in a civil partnership to check whether they are entitled to register for the new married couple’s tax allowance.
Referred to by the Government as the Marriage Allowance, registration for this new tax break is now open and the spouse or partner with the lower income can register at www.gov.uk/marriage-allowance It is estimated that more than four million married couples and 15,000 civil partnerships will be eligible when it comes into effect from 6 April 2015.
“This is fantastic news for married couples and those in civil partnerships in Cheshire and Staffordshire, as it offers a potential tax saving of up to £212 a year,” explains Banks Sheridan director, David Morris.
To be eligible for the Marriage Allowance, the individual making the claim must earn less than £10,600 and their higher earning spouse or civil partner earn between £10,601 and £42,385. This does exclude those with earnings outside of these amounts and unmarried couples.
David Morris comments: “The new Marriage Allowance has been designed to help couples not considered as high earners to keep more of the money they earn by allowing the transfer 10% of the personal tax allowance to their spouse or civil partner. This equates to £1,060 for the 2015/16 tax year, which could save up to £212 on this year’s tax bill.”
“Registration is very straight forward”, adds David Morris “and from 6 April this year, HMRC will contact those already registered and if eligible, issue new PAYE tax codes. But don’t worry if you haven’t applied straight away as registration can take place at any time during the tax year and still receive the full allowance.”