Married couples can claim £1,200 tax payment before Christmas - who is eligible?

Wednesday, 25th November 2020, 11:55 am
Updated Wednesday, 25th November 2020, 11:56 am

Married couples could be eligible to claim up to £1,200 through the government’s Marriage Tax Allowance scheme.

If you’re married or in a civil partnership you may be eligible for the payout, according to money saving expert Martin Lewis.

The scheme allows a non-tax payer in a marriage to shift 10 per cent of their tax-free allowance to their partner and backdate this up to four years, meaning some people could be due a £1,188 payout.

Who is eligible?

Speaking on ITV’s Lorraine show, Martin Lewis explained that there are currently “hundreds of thousands of eligible people missing out” on the payment.

He said: "If in your marriage one of you is a non-tax payer and one of you is a basic, 20 per cent rate tax payer, the non-tax payer can apply to shift 10 per cent of their personal allowance to the tax payer."

"So, this year, 10 per cent of that is £1,250, so think of it, we take £1,250 from somebody who doesn't pay tax, we give it to the tax payer who would usually pay 20 per cent on that, and that's a saving of £250.

"As it can be backdated for four years, if you are eligible, in total, there are people out there getting cheques for up to £1,188.”

How to claim

The non-tax payer has to apply for the Marriage Tax Allowance, and can do so by filling out a questionnaire on the government’s website.

Mr Lewis said that the Marriage Tax Allowance is typically paid quickly, and that “many people will get this money before Christmas, if they apply now”.

You can check your eligibility and make a claim here.