Give the gift of marriage allowance

15 February 2023

Married couples or those in a civil partnership could save up to £252 a year by claiming marriage allowance.

Marriage allowance allows employees to transfer £1,260 of their personal allowance to their husband, wife or civil partner.

HM Revenue and Customs (HMRC) published that more than 2.1 million couples currently benefit from marriage allowance. However, HMRC estimates that thousands of more couples are missing out because they don’t realise that they may be eligible, particularly couples where one partner has retired, has given up work to take on caring responsibilities, or is unable to work due to a long-term health condition.

More information on marriage allowance can be found at GOV.UK. Couples can also use the marriage allowance calculator to check eligibility for tax relief.

Upon an employee’s successful application, HMRC will issue both individuals new tax codes to reflect the new allowances. The employee receiving the extra allowance will be issued with an ‘M’ tax code and the employee giving up some of their allowance will be issued with an ‘N’ tax code. Payroll professionals should remember to check tax code notices received from HMRC and apply appropriately to employee records. You can read more on tax codes here.

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