The Marriage Allowance is a great tax benefit for many couples in the UK, allowing one partner to transfer part of their unused Personal Allowance to the other. But circumstances change — and when they do, you may need to cancel your Marriage Allowance to avoid paying the wrong amount of tax.

If you’re unsure how the cancellation process works, this guide explains everything you need to know and how the team at Accounting Firms can help keep your tax affairs up to date.

What Is Marriage Allowance?

Marriage Allowance allows the lower-earning spouse to transfer up to £1,260 of their Personal Allowance to their higher-earning partner, reducing their tax by up to £252 per year.

But you may need to cancel it if:

• Your income changes

• Your partner’s income changes

• You start earning above the Personal Allowance

• You separate, divorce, or your living situation changes

• One partner no longer meets eligibility requirements

When Should You Cancel Your Marriage Allowance?

You must cancel as soon as you’re no longer eligible. If you don’t, HMRC may adjust your tax code and you could end up owing tax later.

Common reasons to cancel include:

• Becoming a higher or additional rate taxpayer

• No longer being married or in a civil partnership

• Your income rising above the threshold

• Your partner becoming ineligible

• A change in employment or tax status

How to Cancel Your Marriage Allowance

Cancelling your Marriage Allowance is simple and can be done online or by contacting HMRC. Here’s the step-by-step process:

1. Cancel Online Through Your Personal Tax Account

The quickest option is to use your HMRC Personal Tax Account:

• Log in at GOV.UK

• Select the “Marriage Allowance” section

• Choose Stop Marriage Allowance

• Follow the on-screen instructions

HMRC will then update your tax code.

2. Cancel by Phone

You can call the HMRC Income Tax Helpline:

• Provide your personal details

• Request to cancel Marriage Allowance

• HMRC will confirm the cancellation

3. Cancel by Post

You can write to HMRC if you prefer. Include:

• Your full name

• National Insurance number

• Reason for cancellation

• The date of change

This method may take longer.

What Happens After You Cancel?

Once cancelled:

• Your tax code will be updated

• Future transfers will stop

• You may still receive backdated rebates or corrections depending on your tax situation

Important: If your relationship has ended, HMRC will cancel Marriage Allowance from the start of the tax year after separation.

Why Use an Accountant When Cancelling Marriage Allowance?

Tax rules can get tricky, especially when income thresholds or employment status changes. An accountant can:

• Check if you’re still eligible

• Calculate whether you’ll save or lose money

• Handle the cancellation process correctly

• Prevent tax underpayments or overpayments

• Adjust your tax planning for the year

If you're not sure whether cancelling is the right move, a qualified accountant can help you make the best financial decision.

Find Trusted UK Accountants with Accounting Firms

Need help with Marriage Allowance, tax returns, or general tax planning? Accounting Firms connects you with verified UK accountants who can guide you through every step.

With our platform, you can:

• Compare free quotes

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• Read genuine reviews

• Choose accountants who specialise in personal tax and HMRC queries

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