Sunday 8 January 2017

Simple Way Couples Can Get Hundreds Of Pounds In Tax Breaks

tax break

Many couples are missing out on hundreds of pounds they could claim in tax breaks.

More than 370,000 married or civil partner couples are eligible for the marriage allowance, which allows someone earning below a certain amount to use their full tax-free allowance to transfer the rest to their partner.

If you claim now you could claw back up to £432 in tax, backdated to April 2015 when the scheme was introduced.

HM Revenue and Customs (HMRC) said it is relatively quick and easy to apply, and can help mend the family finances after Christmas.

The tax authority said more than 1.3m couples across Britain have already used the scheme.

You can get Marriage Allowance if all the following apply:

  • You're married or in a civil partnership

  • You don't earn anything or your income is under £11,000

  • Your partner's income is between £11,001 and £43,000

Ruth Owen, director general of personal Tax, HMRC said: “An extra £432 is a really helpful way to start 2017, especially after Christmas.

“If you want to get your finances in order this year, it only takes a few minutes to check if you can get the Marriage Allowance tax break online.”

Everyone has a personal allowance that means they don’t pay tax on the first £11,000 they earn each year.

The marriage tax break means many people who earn less than that can let their husband or wife use up to £1,100 of their unused allowance instead.

But the tax break proved controversial before it was introduced, the Liverpool Echo reported, with Labour questioning former prime minister David Cameron’s priorities .

Labour MP Rachel Reeves previously said: “We should be helping all families and not just some.

“David Cameron’s so-called marriage tax break won’t even help two-thirds of married couples, let alone millions who are separated, widowed or divorced.

“He’s so out of touch he thinks people will get married for £3.85 a week. And even for the minority who might benefit, it will be far outweighed by what David Cameron’s government has already taken away in higher VAT and cuts to child benefit and tax credits.

“In most cases, the extra payment will be paid to men, even though it is women who have disproportionately lost out so far.”

But David Cameron defended the policy at the time: “There is something special about marriage - it’s a declaration of commitment, responsibility and stability that helps to bind families.

“The values of marriage are give and take, support and sacrifice - values that we need more of in this country.”



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