HMRC is urging Britons to check if they may be able to save on tax through the Government’s Marriage Allowance.

Using the allowance, married couples or those who are in a civil partnership can reduce their tax bill by up to £252 a year.

In a post on X, formerly known as Twitter, HMRC wrote: “Are you married or in a civil partnership? Here's a tax saving made for two. Check if you're eligible for Marriage Allowance.”

How does Marriage Allowance work?

Marriage Allowance lets people transfer £1,260 of their personal allowance to their husband, wife or civil partner.

This reduces their tax by up to £252 in the tax year from April 6 to April 5 the next year. To benefit as a couple, the lower earner must normally have an income below the personal allowance - this is usually £12,570.

People can calculate how much tax they could save as a couple by using the Government’s calculator.

At present, people can backdate their claim to include any tax year since April 5, 2019, that they were eligible for Marriage Allowance.

It should be noted that, when a portion of a person’s personal allowance is transferred to their partner, they might have to pay more tax themselves. However, as a couple, they could still end up paying less overall.

If both have no income other than their wages, then the person who earns the least should make the claim.

If either gets other income, such as dividends or savings, they may need to do more to work out who should claim. People can call the Income Tax helpline if they’re unsure.

Zoe Bailey, director of financial planning at UK wealth management firm Evelyn Partners, said: “Those in long-term relationships and cohabiting must recognise that they are forgoing significant tax benefits and possibly financial security by not getting married or remaining outside of civil partnership.

“It’s understandable that some individuals might be averse to combining their finances with those of another, whether they are married or not – and some of those going through divorce might lament that they ever did.

“But couples can still look to put in place important cohabitation agreements in these circumstances.

“While marrying for financial motives is few people’s idea of romance, it is also important to remain informed of the possible financial, and particularly tax, advantages of marriage – and the financial rights that someone does or does not have when cohabiting.”

People can apply for Marriage Allowance for free online.