Marriage Allowance — £252 a Year Many Couples Miss

Marriage Allowance lets a lower-earning partner transfer £1,260 of their Personal Allowance to their spouse or civil partner, cutting the couple's tax bill by up to £252 a year. Claims can be backdated up to four tax years, so a first claim can be worth over £1,000.

Who qualifies

You must be married or in a civil partnership (not just living together). The transferring partner must earn less than the Personal Allowance (£12,570) — including earning nothing. The receiving partner must be a basic-rate taxpayer: income between £12,571 and £50,270 (£43,662 in Scotland, because the Scottish higher rate starts earlier). If either condition fails, the allowance cannot be claimed.

How it shows up

The receiver's tax code gains an M and the transferor's gains an N. The saving is automatic through PAYE once HMRC processes the claim. Claims are made online through GOV.UK or by phone, and the allowance continues each year until you cancel it or your circumstances change.

Watch out

If the lower earner is close to the £12,570 line, transferring can push part of their own income into tax and wipe out the gain — check both incomes first with the take home pay calculator. Divorce or a partner moving into the higher-rate band ends eligibility; tell HMRC when circumstances change to avoid a bill later.