Martin Lewis has issued a warning to four million Brits ahead of the end of the tax year. He is advising around two million married couples and civil partners to check their eligibility for a tax break worth up to £1,260. Martin Lewis is urging couples to act before the end of the 2025/26 tax year on April 5, as claims can be backdated for up to four years.
The Marriage Allowance benefit lets low-income earners transfer £1,260 of their Personal Allowance to their partner to reduce their annual tax bill. To be eligible for Marriage Allowance, the lower earner must have an income below their Personal Allowance (typically £12,570), and the higher earner must pay basic rate tax. When the transfer is made, the non-taxpayer's allowance falls to £11,310 and the taxpayer's threshold increases to £13,830, resulting in an annual saving of £252.
A lot of couples have never applied for the Marriage Tax Allowance despite being qualified. Those who have qualified but not applied for Marriage Allowance could be owed up to £1,260 due to backdating. It remains unclear how many of the four million Brits warned are actually eligible, and what specific steps couples should take to apply before the April 5 deadline.
Additionally, the exact process for receiving backdated payments has not been detailed.