Warning to married couples who could be owed lump sum payment worth more than £1,200 – easy 30-second move to check

MILLIONS of married couples are being urged to check if they are owed a lump sum of more than £1,200.

Marriage allowance allows married couples or civil partners to share their personal tax allowances.

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HMRC has revealed that March is the most popular month for marriage allowance applications, with almost 70,000 couples applying in March last year

Marriage tax allowance lets couples claim money back where one half earns less than £50,270 a year and the other earns less than £12,570 or doesn’t earn any money at all.

So if you or your partner has not used up your personal allowance which is currently £12,570 a year, you can hand it over to the other.

This could save them up to £252 in the current tax year and what’s more, you can backdate any claims for up to four years if you were eligible previously – a total saving of £1,260.

Angela MacDonald, HMRC’s deputy chief executive and second permanent secretary, said:  “Marriage allowance keeps money in your pocket by reducing the amount of tax you and your spouse pay by up to £252 a year.

If you’re not sure if you’re eligible, HMRC has an online marriage allowance calculator that can help you to check.

And the good thing is, it only takes 30 seconds to fill out.

HMRC said that couples who may be unaware they can claim include those where one partner is working and the other has an income less than £12,570, including those who:

• have retired
• have given up work to care for children or elderly relatives
• are unable to work because of long term health conditions
• have a part time job
• have a low paid job

To make your claim online you will need both of your National Insurance numbers plus some forms of ID.

Another tax break that could give couples a cash boost

One way couples could save a bit of cash is by maximising their Personal Savings Allowance.

If one half of a couple has hit their tax-free limit on earnings and the other hasn’t, you can transfer your savings across and use up their remaining Personal Savings Allowance (PSA).

PSA is the total amount of interest you can earn across all your bank accounts, minus ISAs, without paying tax.

Under the allowance, basic-rate taxpayers, those with a yearly income between £12,571 and £50,270, can earn £1,000 in savings income before having to pay tax on it.

Meanwhile, higher-rate taxpayers, those earning between £50,271 to £125,140, have a £500 allowance.

If your partner has not hit their tax-free limit on earnings you can simply transfer any savings from one bank to another.

However, we spoke to tax expert Laura Suter who has a warning if you are thinking about doing this.

We have the full list of tax breaks for couples including survivor benefits and inheritance tax.

Meanwhile, one mum claimed back £250 when she realised she was eligible for the cash boost.

Who is eligible for marriage allowance?

You can claim marriage allowance if any of the following apply

• You are married or in a civil partnership
• You do not currently pay income tax or your income is below your personal allowance (usually £12,670)
• Your partner pays income tax at the basic rate, which usually means their income is between £12, 571 and £50, 270 before they receive marriage allowance.

It is also worth noting that you cannot claim marriage allowance if you are living together and not married or in a civil partnership.

Claims for marriage allowance can be backdated to include any tax year since April 5, 2018 that you were eligible.

Your partner’s tax bill will be reduced depending on the personal allowance rate for the years you’re backdating.

You can apply for marriage allowance by filling out a form on the government website.

You can also apply through self-assessment or by writing to HMRC.

This post first appeared on thesun.co.uk