HMRC Urged for Clarity as 21,000 Couples Miss Out on Marriage Allowance Benefit

Recent scrutiny over the Marriage Allowance reveals concerns about eligibility loopholes potentially allowing earners above income thresholds to qualify.

Loophole Uncertainty Raises Questions About Marriage Allowance Eligibility

There’s been recent scrutiny over the Marriage Allowance, which lets couples transfer £1,260 of Personal Allowance to save up to £252 in tax annually contingent on the higher earner’s income falling between £12,571 and £50,270. However, a loophole suggests eligibility might extend to earners above this threshold if they contribute to a pension or make gift aid donations. This issue highlighted by RSM tax experts and reported by The Sun, underscores unclear HMRC guidelines. Clients initially denied claims due to these unclear rules were later approved upon resubmission raising concerns about thousands potentially missing out.

Despite 4.2 million eligible couples only half have claimed the Marriage Allowance, indicating a significant gap in receiving entitled benefits. Concerns persist over potential misunderstandings affecting up to 21,000 claims. HMRC disputes these concerns asserting no issues with processing applications, emphasizing eligibility based on income and tax rate criteria. This contrasts with reports of initial rejections due to unclear guidelines challenging HMRC’s reassurances, according to the report of Mirror.

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(photo: Kent Live)

HMRC Urged to Enhance Guidance on Marriage Allowance Eligibility

Applying for Marriage Allowance involves a free straightforward online process via HMRC’s official portal, emphasizing the need to avoid scams and use official channels. Financial experts warn against unofficial application methods. Clearer guidance from HMRC is urged to ensure eligible couples understand and claim their entitlements promptly.

Ongoing concerns by tax experts and media reports highlight the need for clearer HMRC communication regarding Marriage Allowance eligibility. Issues underscore challenges in navigating criteria and the importance of accessible guidance for all eligible couples. Stakeholders await further updates from HMRC to address these ongoing challenges effectively.

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