Maximise Your Tax Savings with the Marriage Allowance

At AIT Accountants, we want to ensure our valued clients are aware of every opportunity to save money on their taxes. One often overlooked benefit is the Marriage Allowance, a tax credit designed to help couples maximise their tax-free income.  

By taking advantage of this allowance, you and your spouse can potentially save hundreds of pounds each year. In this informative guide, we will provide you with all the essential information about the Marriage Allowance, including eligibility criteria, application process, and managing changes in circumstances. 

The Marriage Allowance allows couples in a marriage or civil partnership to optimise their tax benefits. It enables the lower-earning partner, typically earning less than £12,570 per year, to transfer the unused portion of their personal allowance to their higher-earning partner. This can result in significant tax savings and increased overall household income. 

Determining Your Eligibility for the Marriage Allowance 

To take advantage of the Marriage Allowance, you must meet specific eligibility criteria based on your residence: 

England and Wales: 

  •  You and your partner must be married or in a civil partnership. 
  • Your income should either be below the personal allowance (£12,570) or you should not pay income tax. 
  • Your partner must pay basic income tax on earnings between £12,750 and £50,270. 

Applying for the Marriage Allowance 

Applying for the Allowance is quick, easy, and entirely free. You can complete the application conveniently online through the official Government website. If both partners rely solely on wages, we recommend that the one with the lower income file the claim. However, if either partner receives additional income from dividends or savings, it’s crucial to strategise and decide who should submit the claim first, optimising the tax benefits for your specific situation. 

Managing Changes in Circumstances 

It’s important to stay proactive and update your tax arrangements in case of changing circumstances. If you experience a divorce, legal separation, dissolution, or if your income no longer qualifies for the Marriage Allowance, it’s essential to cancel your claim promptly. You can cancel online or by phone. By taking this step, you can avoid potential complications and ensure accurate tax payments for the remainder of the year. 

Additionally, in the unfortunate event of your partner’s passing after receiving a portion of your personal allowance, it’s important to note that your personal allowance will revert to its original amount, and their estate will be treated as having the increased personal allowance. 

Reap the Benefits of the Marriage Allowance 

By harnessing the potential of the Allowance, you and your spouse can unlock substantial tax savings. At AIT Accountants, we encourage you to explore this opportunity and take the necessary steps to apply for the Marriage Allowance.  

Our expert team is here to assist you throughout the process and ensure that you make the most of this valuable tax credit. Don’t miss out on the chance to boost your household income and achieve significant savings. Contact us today at to get started on optimising your tax benefits through the Marriage Allowance.