Taxed individually or as married couple?

W

wiggles1980

Registered User
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22
I earn 23k and husband 49k.
Should we look into being taxed as a married couple or remain taxed individually? Would it make much difference to us?
 
If your husband is a higher rate taxpayer,you can allocate some of your standard rate tax band to have more of his income taxed at the lower rate.
 
Individually the first €32,800 is at 20%. Earnings above that are at 41%.
Joint assessment would permit up to €65,600 between you at 20%, with a maximum of €41,800 at 20% for any one spouse.
You could therefore allocate Standard Rate Band of €41,800 to husband leaving €23,800 for self. Your earnings would all be at 20%. He would then have up to €41,800 at 20% instead of €32,800 or some €9,000 reduced from 41% to 20% a saving of up to €1,890 in tax per annum.
 
Great thanks for the replys!
Can this be backdated to the year we officially got married, 6 years ago?
 
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