Martin Lewis has issued an urgent reminder to about a crucial tax benefit that could boost a couple's Personal Tax Allowance to £13,830 before the tax year ends.
With the April 5 deadline approaching, Lewis emphasised that eligible couples should act quickly to secure this valuable tax break.
The money saving expert explained that couples could save £252 per year through the Marriage Tax Allowance scheme, where non-taxpaying partners can transfer a portion of their allowance to their tax-paying spouse.
The standard Personal Tax Allowance is £12,570 per year, but married couples can take advantage of a special arrangement through HMRC.
The scheme allows a non-taxpaying partner to transfer 10 per cent of their tax-free allowance to their spouse who pays basic rate tax.
Martin Lewis explains Marriage tax free allowance boost
PA/GETTYThis transfer is made through a simple application process on the gov.uk website, where the non-taxpaying partner can move a portion of their allowance to their partner.
The process results in the non-taxpayer having a reduced Personal Allowance of £11,310, while the taxpaying partner's allowance increases to £13,830.
Explaining the financial benefits, Martin Lewis said: "Each of you have your £12,570 Personal Allowance, that's the amount you can earn each year that you don't pay tax on.
"So the non-taxpayer can apply to gov.uk to move 10 per cent of their tax-free allowance across to the basic rate taxpayer.
"The net result of that is the non-taxpayer now has a Personal Allowance of £11,310 and the taxpayer has a combined allowance of £13,830. That 10 per cent extra, they would have paid tax on it at 20 per cent, so the gain there is £252 a year."
Lewis stressed the urgency of taking action, stating: "You need to do this quickly because the tax year ends on April 5. You can claim back up to four tax years if you're eligible, which means a total gain of £1,258."
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The money expert detailed how payments are processed: "For the current year, your tax code is altered, and for past years, you receive a cheque or bank transfer."
He emphasised the importance of the scheme, describing the Marriage Tax Allowance as "absolutely crucial to do."
According to HMRC's website, eligibility for the scheme requires the lower-earning partner to have an income below their Personal Allowance, which is typically £12,570.
Lewis stressed the urgency of taking action
GETTYCouples can calculate their potential tax savings directly, though HMRC advises contacting the Income Tax helpline if receiving additional income such as dividends, savings or job benefits.
While the lower-earning partner might face a slight increase in their own tax liability when transferring their allowance, HMRC confirms that couples could still benefit overall from reduced tax payments.
