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Martin Lewis is widely considered a money saving expert, having founded the website of the same name. This week, a member of the public contacted him, after a friend had managed to make huge savings.
Taking to Twitter, the person, "Paul" revealed his friend had received a cheque for £850, and added that he had wanted to thank Mr Lewis.
It came after the financial journalist highlighted the savings which could be made via the Marriage Allowance.
"@MartinSLewis mate in work wants to say a big thank you for claiming his wife’s marriage tax allowance as he received a cheque for £850 in tax back yesterday which has come in handy big time," the Twitter user penned.
Responding to the message, Mr Lewis reminded his 835,800 Twitter followers that it's still possible to claim the Marriage Allowance and potentially get a payout of £850 plus.
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Martin Lewis commented on the Marrriage Allowance on Twitter
He wrote: "This is still doable are you due £850+ too? If you're married / civil partners and
- One is non taxpayer
- Other basic 20 percent rate taxpayer."
Mr Lewis also signposted a Money Saving Expert guide on the Marriage Tax Allowance.
Following the start of the 2020 to 2021 tax year, couples could potentially get a tax break of up to £1,188.
It's estimated that 2.4 million qualifying couples are missing out on this.
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The Marriage Allowance allows a person to transfer £1,250 of their Personal Allowance to their husband, wife or civil partner.
In the current tax year, this reduces their tax by up to £250.
To benefit as a couple, the lower earner must normally have an income below the Personal Allowance - something which is usually £12,500.
It's possible to calculate how much tax could be saved as a couple under the Marriage Allowance, via Gov.uk's Marriage Allowance calculator.
Martin Lewis posted about the Marriage Allowance on Twitter
Marriage Allowance: Who can apply?
A person may be able to benefit from Marriage Allowance if all of the following conditions apply:
- They're married or in a civil partnership
- They do not pay Income Tax or their income is below their Personal Allowance (usually £12,500)
- Their partner pays Income Tax at the basic rate, which usually means income is between £12,501 and £50,000 before they receive Marriage Allowance.
It's possible to backdate the claim to include any tax year since April 2016 that a person was eligible for Marriage Allowance.
This means the the claimant's partner's tax bill will be reduced depending on the Personal Allowance rates for the years that are being backdated.
In 2016/17, the amounts are £220, while it's £230 for the following tax year.
The savings rise to £238 for 2018/19, while it's £250 for the 2019/20 and current tax year.
As such, if a person can claim now and backdate the maximum four years, they can get up to £1,188.
What's more, the money for the previous tax years will be paid as a cheque.