Standard Rate Band both working

Hi. We are both working and tax assessed jointly. In a retirement scenario, one of us would earn over €33,800 pension and the other a good bit less. Am I correct in thinking the pension paid to one person over €33,800 will be taxable at 40% even though the other person falls short of €33,800 by some distance? Figs for working out:
Pension A = €36,000 Pension B = €24,000
Tax: (€33,800+€24,000) @ 20% = 11,560
plus (36,000-33,800) @40% = 880
Total Tax = 12,440 less credits etc.


Is this correct?

No, as you are jointly assessed you can earn Eur 66K without the higher rate band. Some of the tax rate band can be moved from the pension B spouse to the pension A spouse. There are restrictions and what rate bands you can transfer between spouses but these should not apply here. talk to your tax office for 2016 and get the rate bands reallocated and ask for a review of 2015 - a balancing statement most likely.

Many thanks. That will help greatly.