Martin Lewis, Money Saving Expert, appeared on This Morning today to discuss marriage tax allowance with Ruth and Eamonn.
He revealed married Britons could be owed £662, and need to check their tax to make sure they are getting the amount.
Martin told Eamonn and Ruth: “Even now, two and a half years after it launched, only around half the eligible people are claiming the marriage tax allowance.
“The latest figures out show only 2.3 million out of 4.2 million eligible people are claiming the tax break.”
Married couples or people in civil partnerships can make the claim.
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It essentially means one is paying tax, and another is not.
Martin said: “One pays tax at the basic 20 per cent rate and the other is a non-taxpayer.”
He added: “The non-taxpayer can apply to have £1,150 of their tax-free allowance shifted to the taxpayer.
“This means £1,150 of income they were taxed on at 20 per cent is now tax-free – a £230/year gain. And you can claim for the last two years too, if you haven’t already – so that’s £662.”
However, Martin said crucially the non-claiming tax payer must apply to get the benefit of the tax break.
He said: “But crucially it’s the non-taxpayer who must apply to transfer their allowance.
“Then once done, you’ll get it for every year going forward. This is easy to do and a no-brainer. For full info on how it works and how to apply, see Martin’s Marriage Tax Allowance Help guide.”
Martin also revealed how you could be losing out on £1800 a year.
He urged Britons to check that they could be claiming the amount before universal credit is rolled out.
It is thought around 1 million people entitled to working tax credit do not claim it, Martin explained.
If you are already claiming benefits and the universal credit amount will be lower, you will still get the high around.