What is Form 18?
Form 18, “Transferring the Married Couple’s Allowance,” is a UK tax form used by married couples. People who are in a civil partnership can transfer some of their tax-free personal allowances from one spouse or partner to the other.
The form is used to apply for the transferable tax allowance, which allows couples to make the most of their combined tax allowances and reduce their overall tax bill. The form should be completed by the lower-earning spouse or partner and submitted to HM Revenue and Customs (HMRC). Continue reading the blog to know how to transfer marriage allowance using Form 18.
Married Couple's Allowance in the UK
The Married Couple’s Allowance (MCA) is a tax relief available to eligible married couples or those in a civil partnership in the UK.
It reduces tax liability by transferring unused portions of one spouse’s or partner’s allowance to the other. The personal allowance is the income a person can earn before paying taxes. This allowance amount is determined by the couple’s circumstances and the tax year in which they live.
To claim the MCA, eligible couples should complete Form 18, “Transferring the Married Couple’s Allowance.” The lower-earning spouse or partner should submit the form to HM Revenue and Customs (HMRC).
A Minimum Amount for the Married Couple’s Allowance
The minimum amount for the Married Couple’s Allowance (MCA) in the UK depends on the tax year and the couple’s circumstances. The MCA is gradually being reduced and will eventually be phased out.
As of the 2021-2022 tax year, the minimum amount of the MCA is £345.
However, the amount a couple may receive will depend on their circumstances, such as their taxable income and the transferable personal allowance available to the lower-earning spouse or partner.
Where Can I Find the Married Couples Allowance Form 18?
The form can be found on HM Revenue & Customs (HMRC) website. To find the form, follow these steps:
Step 1: Visit the HMRC official website.
Step 2: On the HMRC homepage, find the “Forms, manuals, and helpsheets” section.
Step 3: Click on “Forms” to access a list of forms related to taxes.
Step 4: Find “Married Couple’s Allowance Form 18” in the list and click on the link to download the form.
Step 5: You may also claim the Married Couple’s Allowance online through the HMRC website.
When Can I Fill Out the Transfer Marriage Allowance Form 18? Is there a deadline?
The Transfer Marriage Allowance Form 18 can be filled out at any time during the tax year.
However, it is essential to note that there is a deadline for making a claim. The deadline for claiming for the tax year is April 5th following the end of the tax year.
For example, if you want to claim the allowance for the 2020-21 tax year, you must claim it by 5 April 2022.
If you missed the deadline for claiming a previous tax year, you could still claim for up to four years before the current tax year. For example, in the current tax year 2022-23, you can claim for the 2018-19, 2019-20, 2020-21, and 2021-22 tax years.
How Do I Know If I'm Owed in Tax Rebate Under the Married Couples Tax Allowance?
Here are some steps to help you determine if you are owed a married tax relief:
1. Review your tax records:
Look at your tax returns and pay slips from the relevant tax years to see how much tax you have paid.
2. Check eligibility criteria:
The Married Couples Allowance is available to married individuals or in a civil partnership on the last day of the tax year. In addition, one spouse or civil partner must earn less than the personal allowance for the tax year, and the other must be a basic rate taxpayer.
3. Calculate the amount of the allowance:
Eligible couples can transfer 10% of their Personal Allowance from the lower to the higher-earning spouse. This can reduce the tax bill of the higher-earning spouse by up to £250 a year.
To calculate the amount of the Marriage Allowance, subtract 10% of the spouse’s Allowance from the tax bill. The current Personal Allowance for the tax year 2022-2023 is £12,570, so 10% of the Personal Allowance would be £1,257.
4. Compare your tax records to the allowance amount:
If your tax records show that you have paid more tax than the amount of the allowance, you may be owed a tax rebate. If you believe you are owed a tax rebate, you can claim by filling out the Transfer Marriage Allowance Form 18 and submitting it to HM Revenue & Customs.