Martin Lewis has explained millions of people could have more than £1,000 paid into their bank accounts in the coming days.
The Money Saving Expert has said that as many as 2.1 million couples could receive the financial boost if they take urgent action. Taking to Twitter, Martin shared the important message stating that people up and down the country have until April 5 to take action.
The expert explained up to £1,300 of tax back payments may be up for grabs through the Marriage Allowance scheme.
The scheme allows you to transfer £1,260 of your Personal Allowance to your husband, wife or civil partner, which in turn reduces tax by up to £252 evert tax year, reports the Nottingham Post.
The financial guru Tweeted: “URGENT [please] share. Are [you] married or in civil partnership if so - Is one of [you] a basic 20 per cent taxpayer? [Or] the other a non-taxpayer (earn under c£12,570/yr). If so [you’re’ likely due up to £1,300 tax back, but if [you] don’t sort by Wed 5 April [you] risk losing £100s.”
"Folks there are 2.1m UK couples eligible for this & MISSING OUT. It’s likely most will get £1,000+ paid straight into their bank accounts possibly within a week. Please retweet the tweet below, make it massive, as if it’s not done ASAP people will miss over £200 of the payout", Martin added.
The founder of MoneySavingExpert.com previously explained that from April 6, couples will "lose the ability" to make claims relating to the 2018/19 tax year, so it is important to apply before the deadline.
What is Marriage Allowance?
Marriage Allowance allows a husband, wife or civil partner earning less than £12,570 to transfer up to £1.260 of their Personal Allowance to their higher-earning partner. This then reduces to amount of tax paid by the higher earner.
Martin Lewis explained: “The non-taxpayer can apply to transfer 10 percent of their tax-free allowance, currently £1,260, to their spouse, so they now can earn that much more without paying 20 per cent tax, so they pay £250 less tax.”
Who can apply for the tax back payment?
You can benefit from Marriage Allowance if
- You’re married or in a civil partnership
- You do not pay Income Tax or your income is below your Personal Allowance (usually £12,570)
- Your partner pays Income Tax at the basic rate, which usually means their income is between £12,571 and £50,270 before they receive Marriage Allowance
All points must apply.
If eligible, you can apply for Marriage Allowance through the Government gateway, here.
You will need your Government Gateway User ID and password or will be required to register if you do not already have one.
Once you’re signed up, the allowance will be paid automatically year after year.
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