Hmrc tax-free personal allowance can be increased to £13,830 for some households

THE TAX-FREE PERSONAL ALLOWANCE HAS BEEN FROZEN FOR YEARS ON END - BUT THERE IS A WAY THAT SOME HOUSEHOLDS CAN GET A BIT MORE CASH IN THEIR POCKET AND FROM THE TAXMAN ALEX EVANS Deputy

Audience Editor 12:43, 02 Jun 2025 The tax-free Personal Allowance has been frozen for a considerable period, and barring an unforeseen policy reversal from the Government, it is projected

to remain at its current level until at least 2028. Due to 'fiscal drag', an increasing number of individuals will find themselves paying higher taxes on their income as wages rise

to combat inflation, and more people earn money that falls within the income tax bracket. The Personal Allowance refers to the sum you can earn before you begin paying tax, which currently

stands at £12,570. Any earnings above this threshold are taxed at 20%, or 40% on earnings exceeding £50,270 for those in the higher rate tax bracket, and 45% on earnings over £125,000 for

additional rate taxpayers. However, there is one method to boost your tax-free Personal Allowance, provided you are married or in a civil partnership. Married couples or those in a civil

partnership can enhance their tax-free income by £252 annually and can also backdate their claim. WE HAVE A DEDICATED NEWSLETTER FOR CHRONICLELIVE’S MONEY-SAVING AND COST OF LIVING STORIES.

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This can be applied to up to four separate tax years if you choose to backdate the claim. This could potentially result in a tax rebate of up to £1,258, reports the Express. Article

continues below HMRC will then modify your tax code to provide you with the money you're entitled to, which when added to the standard Personal Allowance for the year (£12,570) totals

£13,830 tax-free instead of £12,570, granting you the £1,260 for the four years' worth of £252. To qualify, one partner must be a non-taxpayer, earning less than £12,570. This could

apply if one half of the couple is not currently employed, has been made redundant or is on a career break for childcare reasons. The other partner must be a basic rate taxpayer, with

earnings between £12,570 and £50,270 (after pension contributions have been deducted). Article continues below This scheme, known as the Marriage Allowance, allows the lower-earning partner

to transfer £1,260 of their Personal Allowance to their partner, reducing their tax bill by £252 per year claimed (20% of £1,260). For the 2024-25 tax year, a slight adjustment was made that

also permits someone earning between £11,130 and £12,570 to transfer their Personal Allowance, although earnings within this range are still subject to tax. It does still result in savings,

albeit not as substantial as those earning less than £11,130. Claims can only be backdated for the current year and the previous four financial years, meaning 2020-21 is now too far back to

claim for, but claims can be made for this current year and the past four dating back to 2021-22.