HMRC provides many tax allowances to businesses and their employees, and a recent addition applies to those employees who are married. Many employers and employees are not aware of the HMRC Marriage Allowance, and employers could become very popular with their staff by bringing it to their attention.
If a business has employees who earn between £10,601 and £42,385 per annum and whose husband, wife or civil partner has an annual income of less than £10,600 (including income from pensions, savings and investments), the HMRC Marriage Allowance can come into effect.
The HMRC Marriage Allowance works by allowing the lower-earning partner to transfer some of their Personal Allowance to the higher-earning partner who is an employee, thereby reducing the tax that the higher-earning partner pays.
In layman’s terms, this means that your employees could receive more in their pay packet they get from you without any additional cost to your business. It’s great employer/employee relationship PR for you and it means additional free money for them.
If you would like a copy of The Pay Pod fact sheet on how it all works (it’s very simple!), which you can customise to include your company branding and then pass to your employees, get in touch with us today via firstname.lastname@example.org or call 01656 363763.
The Pay Pod can manage your payroll and auto-enrolment allowing you to manage your business.
For further information and friendly advice, contact us today.