Do you know about the shared marriage allowance?

 Could you or your employees benefit from it?

What it is the Shared Marriage Allowance

The Shared Marriage Allowance came into force in April 2015 although not everyone that can is taking advantage. The shared marriage allowance allows you to share some of your unused tax allowance with your partner, therefore creating a benefit to the couple of reducing the overall tax paid.

Married couples made up of one non-tax payer (earning below £11,500 in 2017-18) and one basic rate tax payer (earning between £11,500 and £45,000 – or £43,000 in Scotland) can take advantage of the scheme.

How it works

The shared marriage allowance allows you to transfer 10% (£1,150 in the 2017-18 tax year) of your personal tax-free allowance to you husband, wife or civil partner if they earn more than you do. This can create a saving of £230 per tax year.

You are also able to back date this allowance to previous tax years as far back as 6th April 2015.

How will I know if I already have the Shared Marriage Allowance?

For this allowance to apply you will have an M or an N at the end of your tax code. M if your personal allowance has gone up. N if your personal allowance has gone down.

Who can apply?

  • If you married or in a civil partnership.
  • If you have an income or less than £11,500.
  • Your partner earns between £11,501 and £45,000 (£43,000 if you live in Scotland).
  • You can still claim if you are living abroad if you get a personal allowance.
  • You can still claim if you are received a pension.

How to apply for the Shared Marriage Allowance?

You can apply for the Shared Marriage Allowance online here. You will need your partners National Insurance number. It may take up to 2 months to be updated in your tax code.

For more information on tax codes visit our blog on Understanding tax codes.

Still unsure about tax codes? Unsure if your payroll is being processed correctly?

Contact CE Back Office Ltd.

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