Martin Lewis warns couples to check if they are owed £1,256

Couples could be quids in (Picture: Metro.co.uk)

The UK’s favourite money-saving guru Martin Lewis has come up with another way millions can get some extra cash in the bank.

He has warned couples that they could be missing out on a bumper tax saving of over £1,000.

To be eligible, couples must be married, with one partner a basic rate tax payer (earning up to £50,270 per year) and the other earning less than £12,570.

They could be saving up to £252 a year – and because this can be backdated four years, when the saving is added together it can reach £1,256.

The way this works is that most workers have a ‘personal allowance’ of £12,570 they can earn tax free.

If one partner is earning less than that, they won’t be making the most of the allowance, so they can apply to transfer some of it to their partner, allowing them to pay less tax.

If couples want to claim the full amount of marriage allowance, though, they need to get a move on and do it before April 5.

The allowance, for the tax years 2019/20, 2020/21, 2021/22, and 2023/24, is worth £250, £250, £252, and £252 respectively.

‘You need to do it now or you lose the £250 for that 2019/20 tax year,’ Martin explained during the Martin Lewis Money Show Live.

‘The backdated pay is by BACS or cheque. It’s literally cash in your bank account.

‘Almost everyone who is eligible for this should do it because you will gain.’

He said around 2.1 million couples who are married or in a civil partnership are eligible.

Once you have successful claimed, the allowance will continue being applied so you won’t need to keep on claiming every year. But you do need to let HMRC know if you are no longer eligible.

For couples where one person earns between £11,310 and £12,570, it is possible they won’t benefit from the allowance as the non taxpayer could be pulled into paying tax with the reduction of their personal allowance.

But depending on how much their partner earns, they could still make a saving, so it depends on individual circumstances.

After a successful claim, HMRC will change the tax code of the higher earning partner if they earn a salary, or give the allowance once they have sent in their tax return if they are self employed.

If your partner has died since 5 April 2019 you can still claim and should phone the Income Tax helpline.

The figures given here are for England, but the allowance is also available in Scotland for couples where the higher paid partner earns up to £43,662.

The lower earning partner should make the claim and they can do it for free online via the government website.

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