Jointly Assessed & Spouse has tendered resignation

[Wonderfish]

Hello, My wife has just tendered her resignation and will most likely take the next 3-6 months out of the work. I am currently earning 100k so just checking if there is any benefit in changing tax credits now as opposed to requesting a Balancing Statement in Jan of next year and receive a lump sum overpayment then?

 

[dublin67]

This depends on when you want the use of your wife's unused tax credits - monthly or in 2025. You can contact the Revenue and ask them to reallocate your wife's credits to you to the extent that they will transfer. No all credits are transferable. The Revenue, most likely, will issue you a revised tax credit certificate on a month 1/week 1 basis.

 

[cally1990]

When she receives her final wages, contact the Revenue and request that your rate band be set at €51,000 with credits of €5,625 (including married and PAYE credits).

Request that they apply the 'Week 1/Month 1' basis. This will ensure that her allowances are maintained for the entire duration she is not working by you

Once she returns to work, she should call the Revenue and revert her rate band to €42,000 with €3,750 in credits, resuming the standard week1/month1 basis.

She will then continue to utilize these allowances for her employment.

By doing this, you will have benefited from the higher allowances while she was not working and prevent liabilities in a tax return and it will minimise your tax situation on wages during the year in real time