Advice needed on splitting my Tax Credits

[jasconius]

Now that I have reached the age of 60, I have decided to reduce my working week from 5 days to 3 days with the approval of my employer. I have the option also of drawing down my private pension and lump sum immediately. I expect my pension to exceed my reduced working salary.

My question is 'can I split my Personal Tax Credits between my 3 day employer and the Pension company'? I assume that the split would be in proportion to the two incomes.

Is it simply a case of ringing the Revenue and asking for the Credits to be allocated or is there something more in this that I am not aware of ?

Any help would be appreciated !

 

[Sophrosyne]

Hi,

You should contact Revenue. This would be a fairly routine matter for them.

You have just one set of tax credits.

If your tax credits are lower than either your employment income or your pension, then splitting would make no difference.

The only reason you would need to split would be if your tax credits were greater than both your employment income and your pension.

 

[mandelbrot]

Tax credits are pretty much irrelevant here, as you'll probably be using them up on your 3-days a week. It's actually your standard rate cut off point that you may need to split.