Link above for govt website for registrating your interest in receiving this small tax allowance (which has been limited by govt to just a partial transfer and thus limited to maximum £212 per year). It is paid per family, not per child.
Note 1: It is called a ‘Marriage Tax allowance’ which in many ways is misleading as it’s not for all married couples (not if one earner earns more than £42k) and it’s also available to couples in civil partnerships who choose not to marry. It’s also available for married couples without children, which is interesting as the rationale is clearly not for raising a family or the extra costs involved in caring, feeding, clothing, housing extra dependants in the household.
Note 2: The allowance goes some way to reducing the penalty currently incurred by single -income families (often with a caregiver at home) but unfortunately single-income households still end up paying a lot more tax on same household income compared with dual earner couples on same overall income. The latter benefit from two non-taxable allowances as well as childcare allowances if they use childcare. Single earners, despite this new allowance, are still heavily penalised.
Note 3: Although the govt has taken steps to ensure that higher earners couples (where one earns more than £42k) are not entitled, they have not taken similar steps to limit the eligibility of couples claiming registered childcare tax allowances (indeed, if using childcare you can claim on joint incomes of up to £300,000).
Filed Monday 23rd February 2015