Last week saw 2020 kick off, and with many people settling back into their everyday lives following the festivities of December, some will be looking to take a look at their finances. The start of the new year will no doubt provide some motivation for some people to take a closer look at their finances, and Martin Lewis was on hand to talk ITV viewers through some ways in order to make their money go further.
During the segment, Mr Lewis pointed out that some people may look to claim the Marriage Tax Allowance.
Thos who are eligible could get up to £1,150.
This is because while in the current tax year the saving via this allowance is a maximum of £250, it is possible o backdate the Marriage Allowance back to the 2015.2016 tax year.
“If you’re married or in a civil partnership, the Marriage Tax Allowance lets non-tax payers who are married to basic-20 percent tax payers transfer 10 percent of their Personal Allowance (the amount you can earn tax-free/tax year) to them,” the founder of Money Saving Expert has explained.
This is if the person they transfer it to earns more than them.
It can reduce their tax by up to £250 in the tax year, which rungs from April 6 to April 5 in the next year.
In order to benefit as a couple though, the lower earner must normally have an income below their Personal Allowance (which is usually £12,500).
A person can calculate how much tax they could save as a couple online, using the Marriage Allowance calculator.
This may differ if the person is in Scotland.
If a person or their partner were born before April 6 1935, then gov.uk points out that they may benefit more as a couple by applying for Married Couple’s Allowance instead.
It’s not possible to get the Marriage Allowance and Married Couple’s Allowance at the same time.