Couples Eligible for £1,260 in Unclaimed Tax Savings via HMRC Backdating

Around two million married couples are not claiming a simple tax break. The Marriage Allowance can cut a household tax bill by up to £252 a year. It can also be backdated for up to four tax years, potentially returning as much as £1,260.

How the Marriage Allowance works

The lower-earning partner transfers £1,260 of their Personal Allowance to their spouse. HMRC then updates the recipient’s tax code. That raises the couple’s tax-free threshold to £13,830 from £12,570.

The transferred allowance reduces tax by 20% of £1,260. That equates to a £252 saving in a single tax year for eligible couples.

Who qualifies

One partner must pay no income tax. That means earning under the Personal Allowance of £12,570.

The other partner must be a basic rate taxpayer. Their income should fall between £12,570 and £50,270 after pension deductions.

Recent rule change

For 2024-25, people earning between £11,130 and £12,570 can now transfer their Personal Allowance. Their income in that band remains taxable. The change still produces smaller savings than full transfers.

How to claim and backdate

Claims can be made online through HMRC. Applicants need both national insurance numbers and ID to complete the process.

Backdating is allowed for the current tax year and the four previous years. That means claims can reach back to the 2021-22 tax year, but not to 2020-21.

Practical steps and cautions

• Use the government online calculator to check eligibility.
• Apply via HMRC to have codes adjusted and refunds issued.
• Be wary of scam websites that mimic official services.

Context and scale

The Personal Allowance has been frozen at £12,570 since 2021. The government has extended the freeze until at least 2031. That freeze causes fiscal drag, pushing people into higher tax bands as wages rise.

Current tax thresholds charge 20% above £12,570 and 40% above £50,270. Additional rate payers face 45% on earnings above £125,000.

Expert view

Financial commentators note many households miss legitimate tax savings. They say a little knowledge of allowances can deliver useful returns.

Filmogaz.com encourages Couples Eligible for £1,260 in Unclaimed Tax Savings via HMRC Backdating to check their status. Doing so could secure refunds for eligible years.