12024: Marriage Allowance in PAYE Payroll - M & N Tax Codes

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Article ID 12024
Article Name Marriage Allowance in PAYE Payroll - M & N Tax Codes
Created Date 05 Feb 2019 00:00:00
Product IRIS PAYE-Master, IRIS Payroll Business, IRIS Bureau Payroll, IRIS GP Payroll, IRIS Payroll Professional, Earnie, Earnie IQ

What is marriage allowance, how does it work?

PLEASE NOTE: This information relates PAYE payroll tax codes for payroll software only.


Not to be confused with the "Married Couple's Allowance", which only applies if one of the partners was born before 6th April 1935, "Marriage Allowance" lets employees transfer £1,100 of their Personal Allowance to their husband, wife or civil partner.

Who can apply

• You’re married or in a civil partnership
• You don’t earn anything or your income is under £11,000
• Your partner’s income is between £11,001 and £43,000

How does this affect payroll?

If an employee's application is successful HMRC will issue both parties new tax codes to reflect the new allowances. The person receiving the extra allowance will be issued with an "M" tax code eg. 1166M. The person giving up some of their allowance will be issued with an "N" tax code eg 1034N.

In terms of payroll process, you should not alter anyone's tax code until you get notification from HMRC to do so.

Applying for Marriage Allowance

The application should be completed by the married couple, they can do this online with the HMRC website,

To apply they will need:

• Both partners NI numbers
And then one of the following:

ο The last 4 digits of the account that your child benefit, tax credits or pension is paid into
ο The last 4 digits of an account that pays you interest
ο Details from your P60
ο Details from any of your 3 most recent payslips

For further details please refer to HMRC website:

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