Nearly 1/2 the couples eligible to say marriage tax allowance are nevertheless failing to accomplish that, in keeping with HM Revenue and Customs (HMRC).
The tax allowance – worth £230 a 12 months – can be claimed via married couples or those in a civil partnership in the event that they meet certain situations.
However, because it turned into brought in 2015, best 2.2 million couples have claimed it, from four.4 million eligible.
The authorities said it had now simplified the application manner.
Last 12 months, HMRC suggested that best a quarter of eligible couples had been claiming.
The cutting-edge figures were acquired because the end result of a Freedom of Information request to HMRC through coverage enterprise Royal London.
Steve Webb, the director of policy at Royal London, said the take-up became “shockingly low”.
“When own family finances are so tight, I might inspire every married couple to test whether they might be eligible, which include for the closing years, as they may qualify for a useful lump sum in addition to a reduction in their ongoing tax invoice,” he said.
How Marriage Allowance works
Partners need to both be married, or in a civil partnership.
One accomplice ought to be operating, and paying tax on the basic fee of 20%. If she or he is incomes over £forty five,000 (£43,000 in Scotland) they are no longer eligible.
The different companion should be incomes much less than £11,500 in 2017-18, that means they pay no tax.
If the above situations are satisfied, the accomplice now not paying tax can transfer 10% of his or her tax allowance to a companion, so saving £230 in this tax year.
Back-claims can be made for previous years.
HMRC has organised several advertising campaigns to persuade human beings to use for Marriage Allowance, and is thought to be frustrated by means of the dearth of take-up.
“Applications have accelerated year on 12 months, and the utility system is simple, and families can follow at a time that’s handy for them,” a spokesperson stated.
Steve Webb said the complexity of claiming might be one cause why such a lot of human beings have not implemented.
“I suspect humans don’t know who’s eligible, or a way to cross approximately claiming it,” he stated.
A government spokesperson stated: “2.2 million couples throughout the UK are preserving greater of the cash they earn way to the Marriage Allowance.
“Applications have expanded 12 months on year and we’ve got simplified the software system to make it less complicated for families to apply at a time which is handy for them.”