Money Saving Expert Martin Lewis has revealed how married couples can get back over £1000 from the government.
Martin regularly gives advice and guidance on how to save money and make the most of your savings. His latest comments come ahead of changes to the Marriage Tax Allowance which will come into effect when the new tax year begins on 6 April 2021. Don’t forget, £20 notes expire in 2021, so ensure you spend them before they go out of circulation.
Speaking on The Martin Lewis Money Show yesterday, the financial expert revealed how couples who are married or in a civil partnership can avoid losing out due to the changes. But they’ll have to act swiftly!
He explained: “Now this is something I call the ‘you can only claim back four tax years rule’.
“So right now on many things, you can go back to the 2016/17 tax year.
“But in three weeks’ time on the 6th April, you’ll only be able to go back to the 2017/18 tax year. That means if you don’t do some things quick, you risk missing out,” Martin told viewers.
One of those things that will be affected by the change Martin mentioned is the Marriage Tax Allowance which was set up in April 2015.
It is available to non-tax-payers who are married or in a civil partnership with someone who pays a basic 20% tax rate.
How can you claim back money from the government?
Money Saving Expert founder Martin explained to viewers exactly how couples can claim back over £1000 from the government, as long as they apply in time.
“They can then apply on gov.uk to shift 10% of their tax-free personal allowance – this year £1,250 – move that over to the taxpayer who then saves 20% on it, so this year that would be a gain of £250,” Martin revealed.
“And if you’re eligible you can backdate it those four years, so do it now and you would get 2016/17 but if you left it for three weeks you’d lose that – it’s about £200 for 2017/18. Dead easy to do, worth checking that out!” he concluded.
It seems that by following Martin’s advice and doing this now could see savvy couples avoid losing out.