Martin Lewis Issues Urgent Warning to Married Couples
Financial expert Martin Lewis has sounded the alarm for married Britons, revealing that approximately two million eligible couples are missing out on a valuable tax break worth up to £1,260. The Money Saving Expert founder emphasized that this oversight affects four million individuals who could be reducing their household tax bills significantly.
The Marriage Tax Allowance Explained
The marriage tax allowance permits a lower-earning spouse or civil partner to transfer £1,260 of their personal tax allowance to their higher-earning partner. This transfer can reduce the household's annual tax liability by up to £252. With the ability to backdate claims for up to four years, eligible couples could receive a lump sum payment of £1,008 if they apply before the approaching deadline.
Martin Lewis stressed the urgency of the situation, noting that the clock is ticking for claims relating to the 2021/22 tax year. "The deadline for maximum back-dating is approaching rapidly," Lewis warned in his latest newsletter. "Failure to submit applications promptly could result in losing £260 of potential refunds."
Eligibility Requirements and Considerations
To qualify for the marriage tax allowance, couples must meet specific criteria:
- Both partners must be born after April 5, 1935
- One partner must be a non-taxpayer with income below £12,570 annually
- The other partner must be a basic rate taxpayer earning between £12,570 and £50,270 (£43,662 in Scotland)
- Higher rate taxpayers earning above these thresholds are ineligible
Lewis highlighted several important considerations for potential claimants. "This allowance is exclusively available to legally married couples or civil partners," he explained. "Cohabiting partners, regardless of relationship duration or family size, cannot access this benefit."
Potential Pitfalls and Strategic Advice
The consumer finance expert cautioned that claiming the marriage tax allowance isn't universally beneficial. For non-taxpayers earning between £11,310 and £12,570, the potential loss of income might outweigh the tax savings for their partner. Additionally, applying could trigger HMRC reviews of tax positions, potentially leading to increased tax liabilities for some households.
However, Lewis provided clear guidance for optimal claiming: "When the basic rate taxpayer earns over £13,830 annually from employment, this arrangement typically proves advantageous for the household," he advised. "Even if the non-taxpayer incurs minor tax obligations, the combined benefit remains positive."
Application Process and Deadlines
The non-taxpayer must initiate the claim through the HMRC website, requiring both partners' National Insurance numbers and two forms of identification from the claimant. Successful applications automatically renew annually, eliminating the need for repeated submissions.
With the new tax year commencing on April 6, 2026, couples have limited time to claim for the 2022/21 tax year. Lewis emphasized that even couples who were eligible in previous years but have since experienced changes in circumstances, including bereavement, should consider submitting claims for eligible periods.
The financial guru recommended using MSE's marriage tax calculator for couples uncertain about their potential benefits. This tool helps households determine whether claiming the allowance would be financially advantageous based on their specific income situations.
