Millions of UK Couples Can Boost Tax-Free Income to £14,064 – Check If You Qualify!

Fiscal drag is a financial term that affects many UK workers without them even realizing it. In simple terms, fiscal drag happens when wages increase to keep up with inflation, but tax-free income thresholds remain the same. This leads to more people paying higher taxes even if their real income has not improved.

In the UK, the Personal Allowance—the amount you can earn before paying tax—is currently £12,570. However, this limit has been frozen until 2028. This means any income above this amount is taxed at 20%. Those earning more than £50,270 pay a higher 40% tax, and incomes above £125,000 are taxed at 45%.

The freezing of the Personal Allowance means more people will be dragged into paying taxes or into higher tax brackets as their earnings increase. This reduces the amount of money individuals take home each year. Many people are unaware of this financial burden, but there are ways to reduce tax payments, such as the Marriage Allowance.

How Marriage Allowance Can Help You Save on Taxes

One way couples can reduce their tax burden is through the Marriage Allowance, a government scheme that allows married couples and civil partners to share part of their tax-free income.

Who Can Claim the Marriage Allowance?

To qualify for Marriage Allowance, couples must meet the following conditions:

1. Be married or in a civil partnership (unmarried couples are not eligible).
2. One partner must earn below £12,570 (this includes those who are unemployed or on a career break).
3. The other partner must be a basic rate taxpayer, earning between £12,570 and £50,270.
4. Neither partner should be a higher or additional rate taxpayer (earning over £50,270).

How Much Can You Save?

If eligible, the lower-earning partner can transfer £1,260 of their Personal Allowance to their spouse. This means the higher-earning partner can save up to £252 per year in taxes.

Even better, couples who have not claimed before can backdate their claim for up to four years, meaning they could receive a lump sum rebate of up to £1,242.

Here is how much you can claim for previous years:

• £252 for 2023/24
• £252 for 2022/23
• £250 for 2021/22
• £238 for 2020/21

This tax relief is a great way for couples to increase their take-home pay, especially as the cost of living continues to rise.

How to Apply for Marriage Allowance

Applying for Marriage Allowance is simple and free. You can apply in three ways:

1. Online through the HMRC website – Log in using your Government Gateway account.
2. By phone – Call HMRC at 0300 200 3300 for assistance.
3. By post – Fill out a paper application and mail it to HMRC.

Once approved, the allowance automatically renews every year, so you don’t need to reapply unless your circumstances change. If you no longer qualify, you can cancel it at any time.

Why You Should Apply Now

With tax thresholds frozen until 2028, many UK households are paying higher taxes than ever before. The Marriage Allowance is one of the easiest ways for eligible couples to reduce their tax burden and increase their income.

Many couples are unaware of this scheme, leaving millions of pounds in unclaimed tax relief. If you haven’t applied before, you could receive an instant lump sum rebate, making it a smart financial decision.

Final Thoughts

Fiscal drag is affecting more UK workers due to the government’s decision to freeze tax thresholds. However, eligible married couples and civil partners can benefit from the Marriage Allowance, which offers a simple way to reduce tax bills and increase take-home income.

With inflation and the cost of living on the rise, every penny counts. If you qualify, don’t miss out on claiming this tax relief—apply today!

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.