HMRC shares tax tip for couples - and it could save you up to £252

HMRC has encouraged individuals to see if they're eligible for a £252 tax saving via an official Government initiative.

In a recent message on X, HMRC highlighted that married couples or those in civil partnerships could benefit from the Marriage Tax Allowance. This allowance permits the transfer of £1,260 of your personal allowance, which is currently £12,570, to your spouse, potentially reducing their tax by as much as £252 for this tax year.

To take advantage of this reduction, the partner with the lower income must typically earn less than the Personal Allowance.

The update stated: "Are you married or in a civil partnership? Here's a tax saving made for two."

Accompanying the post was a brief video, pointing out that couples could save "up to £252" by applying for the Marriage Allowance, reports the Mirror.

To be eligible for the Marriage Tax Allowance, you need to be married or in a civil partnership, and both partners must have been born on or after April 6, 1935. Cohabiting couples without a marriage or civil partnership are not entitled to this tax benefit.

One partner needs to be a non-taxpayer and the other should be paying the basic 20% rate of tax. This typically means one person doesn't pay tax or earns less than £12,570 annually.

The other individual needs to earn between £12,571 and £50,270 - or £43,662 in Scotland - which qualifies them as a basic 20% rate taxpayer. Higher or additional-rate taxpayers are not eligible for Marriage Tax Allowance.

To claim - which is entirely free - the non-taxpaying partner must apply for the marriage tax allowance. Once the claim is submitted, it'll apply for future tax years as long as you continue to meet the eligibility criteria.

If you're applying for the current tax year, the higher earner will pay slightly less tax on their take-home pay. However, if you're backdating for previous years, you will receive a payout via bank transfer or cheque.

You can use an online tool called the Marriage Allowance Calculator to check your eligibility, which HMRC says takes only 30 seconds. You can apply online through the HMRC website or by calling 0300 200 3300.

You'll need your National Insurance number and ID ready.