How to reduce your tax bill as a married couple in the UK
How to reduce your tax bill as a married couple in the UK
Married couples and civil partners in the UK can benefit from two tax reliefs that aim to reduce their tax burden. These reliefs are the Married Couple's Allowance and the Marriage Allowance.
The Married Couple's Allowance is available for couples born before 6 April 1935, where one partner is the sole earner or earns significantly more than the other. The couple must be married or in a civil partnership and living together.
The allowance is calculated at 10% of the lower earning partner's income, up to a maximum of £9,125 in the tax year 2022-23. This means the tax relief can be up to £912.50 per year.
To claim the Married Couple's Allowance, both partners must fill out a self-assessment tax return. If one partner doesn't normally complete a self-assessment tax return, they will need to register to do so.
The Marriage Allowance is available for couples born after 6 April 1935, where one partner earns less than the personal allowance, which is the amount of income that can be earned before tax is due. The other partner must earn more than the personal allowance but less than £50,270. The couple must be married or in a civil partnership and living together.
The Marriage Allowance allows one partner to transfer 10% of their personal allowance to their spouse or civil partner. In the tax year 2022-23, the personal allowance is £12,570, so the Marriage Allowance is worth up to £1,257 per year. This means that the partner who earns less than the personal allowance can reduce their tax bill by up to £251.40 per year.
To claim the Marriage Allowance, the partner who earns less than the personal allowance must apply online through HM Revenue and Customs (HMRC).
Married couples and civil partners in the UK can benefit from tax reliefs that aim to reduce their tax burden. The Married Couple's Allowance is available for couples born before 6 April 1935, and the Marriage Allowance is available for couples born after 6 April 1935. Both reliefs can help reduce the amount of tax they have to pay, and couples can claim them by filling out a self-assessment tax return or applying online through HMRC. If you are unsure if you are eligible for either relief, you can consult a tax specialist or financial advisor.
At Gondal Accountancy, we provide a range of accounting and tax services for individuals and businesses. Our team of experts can help you navigate tax laws and regulations, and ensure that you are claiming all the tax reliefs you are entitled to. Contact us today to find out how we can help you.
Disclaimer: Please be advised that the content of this blog is meant to serve as general information only, and should not be considered as tax advice. Given the complexity of tax laws and the potential for regulatory changes, it is strongly advised that you seek the guidance of a qualified tax professional or financial advisor prior to making any decisions based on the information contained in this blog. Please note that neither Gondal Accountancy nor its staff assume any responsibility or liability for any decisions made or not made as a result of the information presented in this article.
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