“Married Couples Tax Break” – new measure launched by HMRC

HMRC launched the registration for the new Marriage Allowance today, which is a tax break for married couples.

It enables married couples or civil partnerships to reduce their overall tax bills, by one member of the marriage/partnership electing to transfer part of their unused income tax allowances to their partner.

This is primarily of use where:

  • Only one member of the marriage/partnership works
  • One person works full time and the other works part time
  • One person has been on sabbatical or unpaid leave (e.g. maternity/paternity leave)

The allowance will operate as a claim, where one person will have to register online with HMRC and the change will be processed via the payroll (by coding). HMRC will confirm the recipient’s change to their Pay As Your Earn (PAYE) tax code.

It may be useful to inform your staff of this new allowance – full details can be found here.

For further advice, please contact Alastair Wilson on 0191 285 0321 or email Alastair.wilson@taitwalker.co.uk.

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