UK households issued £1,000 HMRC tax warning -

UK households have been issued a £1,000 HMRC tax warning as couples may be missing out on £252 yearly.

The Marriage Allowance allows a lower-earning husband, wife or civil partner transfer £1,260 of their Personal Allowance to their partner, cutting the couple’s tax bill by up to £252 for a tax year.

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These claims can be backdated to April 6, 2022, meaning eligible couples could be due up to £1,008.

Married couples and civil partners where one person does not pay Income Tax, or earns less than the Personal Allowance, which is usually £12,570, are covered by the allowance.

To be eligible, the other partner must normally pay the basic rate of Income tax, usually between £12,571 and £50,270.

In Scotland, the partner receiving the allowance must pay the starter, basic or intermediate rate, which usually means income between £12,571 and £43,662.

Couples have to be married or in a civil partnership in order to make the claim.

Older couples, with one person born before April 6 1935, may be better off checking the Married Couple’s Allowance, as the two allowances cannot be claimed at the same time.

The person giving up part of their Personal Allowance must make the claim via the government website or post.

For earlier years, the partner receiving Marriage Allowance may get a refund from HMRC.

Tax codes will likely be changed so that the allowance continues automatically until it is cancelled for any future years.

A spokesperson for Vettory, financial assistance platform said: “This is exactly the sort of allowance that can be missed because nothing dramatic happens when you become eligible.

"A partner may reduce their hours, retire, take time out for caring, or have a lower-income year, and the couple never think to revisit their tax position.

“The key point is that people do not need to pay a refund company just to check this. Use the official GOV.UK Marriage Allowance service first, make sure you meet the rules for every year you are claiming, and set a yearly reminder to review any tax breaks or benefit entitlements that may have changed with your income. ”