Thursday 28th March 2019

Can I save tax if I am married?

What is the Marriage Allowance and who can get it?

You can receive or transfer 10'% of your tax free allowance to or from your spouse or civil partner each tax year to save tax.

To benefit as a couple, you must be married or in a civil partnership, living together doesn't count.  One of you needs to be a basic rate 20% tax payer.  Higher 40% and additional rate 45% tax payers are not eligible for this allowance.

You can backdate your claim 4 years to include any tax year since 6 April 2015 that you were eligible for Marriage Allowance.

Example based on the tax year ending 5th April 2018

David has been working as a dental nurse earning £18,000 and studying to become a dentist.  David pays income tax at the basic rate tax band of 20% on his earnings above £11,500.  His wife Daisy doesn't work and looks after their three-year old son Duncan. 

As David is a basic rate tax payer, Daisy elects to transfer 10% of her £11,500 tax free allowance to David.   Daisy's allowance is now reduced from £11,500 to £10,350.   As a result, Daisy still pays no tax and David pays £230 (£1,150 @ 20%) less tax.

As Daisy hasn't worked since 2015 and David has worked and payed tax in the since 2015 the allowance transfer can be backdated to 2015.  This results in a further £432 tax saving to David.

You can make a claim online at 


We will link your business bank account to Xero software. All your income and expenses will feed directly in to Xero. This saves you time in preparing your year end paperwork, and you can even store your documents in Xero