Business

Martin Lewis urges Britons to check if they can claim ‘urgent’ £1,256 tax back | Personal Finance | Finance


is urging couples to check if they claim as much as £1,256 in tax back from HMRC – but they have to act fast to secure the full amount.

Posting a snippet of one of his previous Money Shows, Mr Lewis wrote to his 2.7 million followers on X: “Are you married? If so you may be due an urgent £1,256 tax back…”

He added: “Lots asking why do you have to be married, isn’t it discrimination against those cohabiting?

“It is discrimination but it’s legal discrimination. It was a deliberate piece of social engineering brought in in 2015 to reward marriage (& civil partnerships) through the tax system.”

In the video, the Money Saving Expert founder told viewers there are around 2,100,000 couples out there who are eligible to claim money through the Marriage Tax Allowance.

Mr Lewis said this is “big money” and many are not claiming it.

He explained: “There are two criteria. First of all, you must be married or in a civil partnership. Just cohabiting doesn’t count.

“One of you must be a non-taxpayer (usually earning under £12,570 a year) and the other one must be a 20 percent taxpayer – that’s usually earning between £12,500 to £50,000 a year.”

If this applies, Mr Lewis continued: “The non-taxpayer can apply at GOV.co.uk to transfer 10 percent of their tax-free allowance to their tax-paying partner.”

This will provide the tax-paying partner with an extra £1,260 per year, contributing to an increase in household income.

However, Mr Lewis noted: “The really important thing is if you were eligible for this since 2019/20, you would be due a total of £1,256 if you claim back.

“You have to do it now or you lose that £250 for the 2019/20 tax year. Once you claim, it’s then paid year after year – but you have to declare if you’re no longer eligible for it.

“The backdated pay is actually by BACS or cheque – it’s literally cash in the bank account.

“Almost everyone who is eligible for this should do it because you will gain.”

Although, he added that the “almost” is “complex”. He explained: “The one very rare scenario is if the non-taxpayer almost earns up to £12,570 and the taxpayer only just earns above it. Because you have to shift the whole 10 percent, they may end up paying tax on a larger amount than they save tax on.”

He added: “But for the vast majority, the big message is just do it because in almost all circumstances it’s worth it.”



READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.