If anyone knows how to cut costs and pocket some savings, it's Martin Lewis. That's why fans were all ears when he announced a clever hack to get over £1,200 back in one day – which is welcome news as we prepare for more price hikes in 2022.
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The Money Saving Expert – who shares daughter Sapphire with his wife, TV presenter Lara Lewington – explained on his website: "If you're married or in a civil partnership, you may be entitled to a £1,220 tax break called the marriage tax allowance – something 2.4 million qualifying couples miss out on. It's really easy to apply and take advantage of this tax break."
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What is the marriage tax allowance?
So how does it work? Martin's website went on to explain: "The marriage tax allowance allows you to transfer £1,260 of your personal allowance (the amount you can earn tax-free each tax year) to your spouse or civil partner if they earn more than you.
"If your claim is successful, it will lower the higher earner's tax bill for the tax year." According to the Gov.uk website, this could save you up to £252 for this tax year, which runs from 6 April 2021 to 5 April 2022, and you can backdate to 5 April 2017 – every penny counts!
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Who is eligible for marriage tax allowance?
Martin shared his money-saving expertise
This applies to couples who are married or in a civil partnership and born after 6 April 1935. One person must be a non-taxpayer (earning £12,570 or less) while the other needs to be a basic rate taxpayer (earning less than £50,270.)
Unfortunately, it doesn't extend to couples who are just living together.
How much money could I be entitled to with the marriage tax allowance?
You could save a total of £1,220
As well as getting £252 back for this year, you can claim for the four previous years, meaning you could be entitled to a total of £1,220 - but those wanting to apply for 2017-2018 will need to do so before 5 April 2022. Martin outlined the money breakdown for the past few years:
- 2020-21 – £250
- 2019-20 – £250
- 2018-19 – £238
- 2017-18 – £230
What have real-life couples said about the marriage tax allowance?
Fans were delighted to hear Martin's latest tip, which was shared on The Martin Lewis Money Show Live, with one taking to Twitter to confirm her own success with the process. "@MartinSLewis after watching your program last night on marriage allowance, I rang up today and £800 cheque is in the post … thank you for all that you do, we are lucky to have someone like you," the message read.
Fans shared their successes
Another replied: "I’m thankful too, for @MartinSLewis, but in the nicest possible way, I wish we lived in a country where we didn’t need him! Why is everything so difficult to find and so difficult to claim/administer? Thank you @MartinSLewis for all that you do."
This is not the first time Martin has raised the subject, and in the past other Twitter followers have also penned: "Watched
@MartinSLewis live show and applied for marriage tax. Got a cheque for over £600 so a huge THANK YOU for making us aware Martin! Much appreciated!" and: "Did the marriage tax thing that @MartinSLewis mentioned last week... £210 back today."
And did we mention, it's totally free to apply? In the past, though, Martin has warned the public to be careful about which sites they use as some will try to charge you unnecessarily.
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