Assessable Spouse. Who is this? Highest Earner?

[Lydia]

Hi,
I got married last year and want to sort out my tax affairs. I earn approximately €30,000 (give or take depending on OT) and my husband earns around €40-45k. We both work full time. I think it would be more beneficial for me to give whatever tax credits that I can to him and also any unused standard rate cut off allowance. Am I right to put my husband as the assessable spouse?
If I put my husband as the assessable spouse do we need to fill in a tax return every year or is it done automatically so that he can benefit from my unused cut off allowance? We both have average standard tax credits etc at the moment.
Thanks!!!!

 

[huskerdu]

Once you decide on one spouse as the assessable spouse, the Revenue will continue to do this every year until you tell them otherwise, there is no need to tell them every year.

Your tax credit cert, issued in Jan or Feb every year, will make clear what tax credits you and he have, so you can change it early in the year, of it suits you.

 

[John Rambo]

Hi,
I got married last year and want to sort out my tax affairs. I earn approximately €30,000 (give or take depending on OT) and my husband earns around €40-45k. We both work full time. I think it would be more beneficial for me to give whatever tax credits that I can to him and also any unused standard rate cut off allowance. Am I right to put my husband as the assessable spouse?
If I put my husband as the assessable spouse do we need to fill in a tax return every year or is it done automatically so that he can benefit from my unused cut off allowance? We both have average standard tax credits etc at the moment.
Thanks!!!!

The way both your salaries fluctuate complicates things but assuming you earn €30,000 and your husband earns €45,000, you should do a couple of things: 1) Advise Revenue of the date you were married and look for "Year of Marriage Review". From the date you were married to the end of that income tax year (i.e. 31 December 2008) you will be assessed as single persons. However, if the tax you paid as two single persons during this period was greater than the tax which would have been payable if you were taxed as a married couple, a refund of the difference can be claimed. 2) Advise Revenue that you wish your husband to be the assessable spouse and that you want him to avail of the €45,400 Standard Rate Cut-off point. Your SRCP will be €27,400. There's no point in transferring credits as you earn enough to use yours.

However, all the above is based on the €30,000/€45,000 assumption. If your husbands salary decreases and your increases the benefits of joint assessment are eroded. It's all dependent on the actual figures.