Households who are eligible to claim a £252 boost are being urged to do so via a tax-free Personal Allowance scheme, including state pensioners.

Martin Lewis’ Money Saving Expert (MSE) has reminded taxpayers that they can boost their tax-free allowance with HMRC using a fully legal scheme which is aimed at married couples.

Those who are married, or in a legal civil partnership, can claim Marriage Tax Allowance for the new tax year, which started last week.

The allowance is worth a tax saving of £252 for the year, and it works by allowing a non-taxpayer in the couple to transfer 10% of their tax-free Personal Allowance to their tax-paying partner, as long as the partner is earning less than the £50,270 40% tax bracket. This could be useful for example if one of the couple has taken time off for childcare, is a retired state pensioner or doesn’t work enough hours to go over the £12,570 Personal Allowance threshold.

Martin Lewis’ MSE explains: “MARRIED / CIVIL-PARTNERED and not claiming Marriage Tax Allowance? It's worth £252 this tax year.

“If one of you is a non-taxpayer and the other a basic 20% taxpayer, you can transfer tax-free allowances between you, so you pay less tax as a couple.”

Not only will it land you £252 tax-free cash this year, but it can also be backdated to add another £1,008 if you are eligible to claim it for each of the past four years as well.

MSE adds: “It's worth up to £252 this tax year, but backdate it the full four years allowed and it can be worth a further £1,008. And once you sign up, you get it every year. Yet 100,000s of eligible couples are still missing out - check you're not one of them in Marriage tax allowance.”

MSE explains who can claim: “Your personal allowance is the amount you can earn tax-free each tax year. It takes into account all taxable income, whether that’s a salary, pension or other forms of income – meaning even pensioners drawing a pension may qualify.

“If your claim is successful, it will lower the higher earner's tax bill for the tax year, but you can also backdate your claim if eligible. Yet only certain couples are able to apply:

The other partner needs to be a basic 20% rate taxpayer. In the 2026/27 tax year, this means you earn less than £50,270 (or £43,662 if you live in Scotland). Higher or additional-rate taxpayers aren't eligible for this allowance.”