What is Marriage Allowance
The United Kingdom leads the widest social policy in Europe. You can obtain money for their children to live and so on from the state. It is also very supportive when it comes to earnings from your work and entrepreneurial activities.
However, can you increase your annual income from your own work, just because you are married or remain in a partnership? In the UK, everything is possible. You can exercise your rights – find out what is the Marriage Allowance and how you can gain over 200 pounds a year!
What is Marriage Allowance?
Marriage Allowance is a tax refund, which couples remaining in legal relationships in the UK can enjoy. It is used very rarely, because few people know of this possibility. It is used by about one million, or only 25% of couples, who are subject to tax refund.
And the money virtually „lie in the street!” Taxes that you pay are very important: it is sufficient that one person in a relationship does not pay income tax because of low wages and the other person pays its basic amount.
And do you know that in England you can return the tax money for washing work clothes at home?
The amount of the tax return for April 2017 year is 220 pounds! What’s more, you can apply for this refund every year. And, furthermore – Marriage Allowance was introduced in 2015 – and you know what? You can also apply for reimbursement of taxes for that year provided that you met appropriate criteria! Then, the tax return is 212 pounds. You can gain 414 pounds in one afternoon!
What requirements must I meet?
First of all, you have to be in a legal marriage or partnership. „Shacking up” with somebody even many years is not taken into account – only couples who legally conduct joint tax settlement are taken into account.
The amount of revenue is very important – one person in the pair must have a tax-free amount less than 11,000 pounds a year. The second one should earn more, but the amount of tax-free must be less than 43,000 pounds. There is also a criterion of age – each partner must have a maximum of 70 years. If you meet these conditions, nothing stands in the way to reach the money from your hard work!
How it works and how much can be gained?
Let us suppose that you earn 5,000 pounds a year and 11 thousand pounds a year is your tax-free allowance and 10% of this is 1100 pounds. Your partner earns 35,000 pounds a year, of which, of course, 11,000 is the amount of tax-free and you resign from your tax-free allowance of 10% and pass it to your partner. Your partner has now an extra 1,100 pounds.
Thanks to this, you have a refund in the amount of 20%. This is of course the ideal situation to the maximum amounts. The exact parameters with your income you can check here: https://www.tax.service.gov.uk/marriage-allowance-application/benefit-calculator/. You have to take into account that 10% tax-free amount will be assigned to a person with lower income, i.e. 1100 pounds with 11 thousand, but 500 pounds with 5000 etc. And, then a 20% return to your household budget (i.e. it will be £ 100 return with 500 pounds).
Are you a parent in the UK? If so, be sure to check the financial guidance for parents in the UK.
How to apply?
Use (you or your partner, who earns less!) this link: https://www.gov.uk/apply-marriage-allowance
Taxation is a complex thing, but here the matter is simple:
- Prepare your National Insurance numbers
- Prepare the last 4 digits of the account on which one of the types of benefits is paid: child benefit, tax credit or your pension (if you don’t reach the age of 70!).
Fill the data that are needed in the online application. If you want to apply for money from the two-years, mark it on the application form. When all goes well, you will be informed about it by e-mail. This of course may take a few weeks, but in this case, patience really pays off!
Does it work? Yes. I use of this opportunity and I enjoy a higher income tax threshold.
Is tax refund so profitable? Just spend a few minutes in front of a computer to gain even 432 pounds. Everything thanks to the facts that you are married or remain in a partnership. Thanks to this money you can take your partner for a date or a fantastic weekend and celebrate your love. What could be more beautiful?
NOTE: I present private opinions and I am not responsible for the readers' decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.