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Martin Lewis shares how married couples can claim free £1,200
The Independent
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2/14/2025
Martin Lewis shares how married couples can claim an extra £1200ITV 1
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News
Transcript
Display full video transcript
00:00
So, let's look at exactly how this works.
00:02
Imagine we have a couple here.
00:03
The crucial part of this,
00:05
one of you needs to be a non-taxpayer.
00:07
So you are not earning your full personal allowance
00:09
you can earn before you start paying tax on it.
00:12
Now, people say, what about if I'm volunteering?
00:13
What about if I'm part?
00:14
If you don't pay income tax, you're a non-taxpayer.
00:17
The other needs to be paying the highest rate of tax
00:20
they pay is the basic 20% rate of tax.
00:24
In Scotland, as long as you're paying tax,
00:26
there are different thresholds there,
00:27
but it works roughly the same way.
00:28
And clearly you have to be married or civil partners.
00:30
Then what happens is this,
00:32
each of you have your £12,570 personal allowance.
00:36
That's the amount you can earn
00:37
that you don't pay tax on each year.
00:38
Yep, you all know that?
00:40
Okay.
00:41
So the non-taxpayer can apply to gov.uk.
00:45
I'm gonna give you a question about that later,
00:47
there's an issue there.
00:48
But apply to gov.uk to move 10% of their tax-free allowance
00:52
across to the basic rate taxpayer.
00:54
There we go.
00:56
Perfect.
00:58
The net result of that is the non-taxpayer
01:00
now has an allowance of £11,310.
01:04
And the taxpayer has a combined allowance of,
01:07
it should merge if I'm lucky, there we go, £13,830.
01:11
Now that 10% extra tax-free allowance they have,
01:15
remember they would have paid tax on it at 20%.
01:18
So the gain there is £252 a year.
01:23
And that's what moving across works.
01:24
And in virtually every circumstance,
01:27
even if the person here,
01:29
and a little bit above that threshold
01:30
where they might pay a little bit of tax,
01:32
but as long as the person on this side
01:34
is earning over £13,830,
01:36
you're always gonna be net up
01:38
if there's a non-taxpayer and a taxpayer.
01:40
Now, you need to do this quickly
01:42
because this year it's each tax year
01:44
and the tax year ends on the 5th of April.
01:46
You can claim back up to four tax years
01:49
as long as you were eligible,
01:51
which means a total gain of £1,258 a year.
01:58
The way it works,
01:59
for the current year your tax code is changed,
02:01
for past years they send you a cheque
02:02
or they send you a bank transfer.
02:04
So the marriage tax allowance is absolutely crucial to do.
02:07
There's a but, but I can see you've got questions.
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0:44
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