Married couple’s allowance is something that not everyone is aware of but, if you meet the criteria, you could save up to £835.50 a year (with a minimum saving of £322 each year). In order to be eligible, you must be married or in a civil partnership, you must be living with your spouse or civil partner (unless you are separated for any reason apart from a formal separation, including a separation due to illness, old age, work that takes one of the couple away from home, prison, training, education, or the armed forced), and at least one of you must have been born before 6th April 1935.
If the marriage took place before 5th December 2005 then the amount of allowance is calculated using the husband’s income. If the marriage or civil partnership took place after that date, then the amount is calculated using the highest income.
The Married Couple’s Allowance is a way to reduce your tax bill, and there is a handy calculator on HMRC’s website which will help you to work out what you are entitled to. Take a look here: https://www.gov.uk/calculate-married-couples-allowance.
It is easy to claim for Married Couple’s Allowance using your self assessment form as there is a section on the form for exactly this allowance. However, if you don’t normally fill in a self assessment form, you will need to get in touch with HMRC. They will want to know the date and details of your wedding or civil partnership ceremony, as well as details about your spouse or civil partner. This will include their date or birth and income.
If you find at the end of the year that you haven’t paid enough tax or that your tax bill isn’t enough to claim the allowance, then it can be transferred to the following financial year. You can also share the Married Couple’s Allowance with your spouse or civil partner, or you can transfer the entire allowance into their name.