Home Finance Martin Lewis issues urgent warning over "extra tax bill" for married couples

Martin Lewis issues urgent warning over "extra tax bill" for married couples

Martin Lewis has issued a crucial clarification for married couples who have been left stunned by an “extra tax bill” from HM Revenue and Customs (HMRC).

Typically, wedded pairs can utilise the Marriage Allowance to transfer a portion of their personal tax allowance to their spouse, up to £1,260. According to current government data, this can reduce their tax by as much as £252.

However, while many couples will take advantage of this to lower their tax, some have instead discovered that they’ve been hit with an unexpected surprise tax bill. Martin explained what this shocking bill is and why it often occurs in the latest episode of the ‘Not The Martin Lewis’ Podcast’.

Martin clarified: “There can be issues with Marriage Tax Allowance because people don’t understand and they transfer their allowance when they shouldn’t but some people get in touch with me quite angry and they say ‘and I’ve had this much extra tax bill because I claim Marriage Tax Allowance’.

“And what’s happened is when they claim Marriage Tax Allowance, their tax code is clearly being looked at and HMRC has changed their tax code and gone ‘oh we’ve missed something’ and therefore, they’re being asked for the tax money. So it’s crystallised whatever was wrong in their system and they’re being asked the tax to pay it.

And my point is look, yes okay, this has caused that crystallisation, but it’s better that it’s been found now because it would have just been bigger later on and it would have been worse and you’re always going to have to pay it.”

“Let’s be frank on this, the inland revenue have more powers than the police if they want to come and investigate things. The last people you want to mess with are HMRC when it comes to these types of matters.”

HMRC itself warns on its website: “When you transfer some of your Personal Allowance to your husband, wife or civil partner you might have to pay more tax yourself, but you could still pay less as a couple.” If you are worried about any unexpected tax bills from HMRC in relation to your Marriage Allowance, you should ring the Marriage Allowance helpline on 0300 200 3300.


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