“Applying for Marriage Allowance is a quick and easy way for married couples and people in a civil partnership to have £250 or more put back in their pockets.
It’s fantastic to see so many couples have already put a few minutes aside to apply, and we hope many more will sign up this Valentine’s Day to take advantage of this tax relief.”
The Marriage Allowance allows people with an income of £12,500 or less to transfer up to a maximum of £1,250 to their husband, wife or civil partner from their own Personal Allowance, if their income is higher. This will then reduce the relevant individual’s tax by up to £250 for the 2020 to 2021 tax year.
If all the following criteria are met, then HMRC customers in England, Wales and Northern Ireland can benefit from the Marriage Allowance:
They are married or in a civil partnership
•
• They do not pay income tax or income is below the Personal Allowance (the current standard allowance is £12,500) • Their partner pays Income Tax at basic rate only, so between £12,501 and £50,000
The criteria differ slightly for customers in Scotland as the partner must pay Income Tax at the starter, basic or intermediate rates, so between £12,501 and £43,430.
HMRC has predicted that four million married couples and 15,000 civil partnerships could benefit from the Marriage Allowance.
Guidance provided confirms that Marriage Allowance claims are automatically renewed each year, so do not need to be submitted annually, but that couples should notify HMRC of any changes to circumstances.
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HMRC publishes rates and thresholds for employers 2020 to 2021 26 February 2020
HMRC has published the rates and thresholds for employers to use when operating their payrolls and/or when providing expenses and benefits to employees.
It is important to note that the tax thresholds for the tax year 2020-21 are yet to be officially confirmed, and that they could still potentially change. The official thresholds should be confirmed at the 11 March Budget, so until that point, nothing should be taken as gospel.
At the time of writing, and within HMRC’s publication, the tax thresholds for tax year 202-21 remain unchanged from those applied in the current tax year, 2019-20. The other rates included are as follows:
• PAYE tax and Class 1 National Insurance contributions • Tax thresholds, rates and codes • Class 1 National Insurance thresholds • Class 1 National Insurance rates • Class 1A National Insurance: expenses and benefits • Class 1A National Insurance: termination awards and sporting testimonial payments • Class 1B National Insurance: PAYE Settlement Agreements (PSAs) • National Minimum Wage • Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay • Statutory Sick Pay (SSP) • Student loan and postgraduate loan recovery • Company cars: advisory fuel rates • Employee vehicles: mileage allowance payments
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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