Best approach for unpaid leave

H

Hanata

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I've had a read through other threads referring to unpaid leave but struggling to get my head around what the best approach for our particular situation is, and would appreciate any advice. We are a married couple, already jointly assessed and over the next year or so, both of us intend to take separate unpaid leave periods of approx. 2-3 months each (mine will be unpaid maternity leave and my husband's will be unpaid parental leave).

Currently I earn approx. 60k and my husband earns 40k. My rate band is approx. 45000 and husband's 26000; my tax credits approx. 5000 and husband's 1650. My husband previously earned under 35k so it was set up for me to have his remaining band etc. and we haven't changed it since his salary increased as my understanding is it's the same joint pay regardless.

I am wondering whether we should make any changes to the above allocations for a) the period I am on unpaid leave and b) the period my husband is on unpaid leave? E.g. for a) should I "give back" my husband's personal tax credit and band etc., and can I give him any of my "unused" credits/band? Is it worth doing this for only 2-3 months? I read on another thread that it might just be better to leave as is and claim any overpayment back at the end of the year, but I'm not fully sure I've understood this correctly so appreciate any advice!

Thanks
 
Hanata said:
I've had a read through other threads referring to unpaid leave but struggling to get my head around what the best approach for our particular situation is, and would appreciate any advice. We are a married couple, already jointly assessed and over the next year or so, both of us intend to take separate unpaid leave periods of approx. 2-3 months each (mine will be unpaid maternity leave and my husband's will be unpaid parental leave).
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Also, you both may qualify for Parents Benefit which is €245 per week, for 5 weeks (Parents leave is different to parental leave). It may take some organising in order to get a 2-3 month stretch, combining with your other unpaid leave.
 
Thanks, that's helpful to know it wouldn't really make a difference - saves some hassle but wanted to be sure we weren't missing out on anything substantial.

I expect we will add the paid parents leave in there somewhere too to maximize the paid period. Just looking at "worst case" for unpaid at the moment since it turns out we may be waiting for a creche space longer than expected!
 
The worst case scenario is that you may have to wait till the end of the year to get some tax back. However, as Red pointed out, even if it's mid year your payroll department will sort it out over the remaining months of the year when you return.
I'm not an accountant or payroll clerk.
 
elcato said:
even if it's mid year your payroll department will sort it out over the remaining months of the year when you return
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Ah yes, the mechanics of it. On this specific point, so long as you're not on 'Week 1' basis, it'll sort itself out in the months you return to work. But if you're on Week 1, or if you don't have another payroll, you just need to request a balancing statement from Revenue after year end and it'll be put right.

If you receive a taxable social welfare payment, you will be automatically be put onto Week 1 basis. I understand the parents benefit is taxable (it only cane in after mine were older, so not something I've seen myself).
 
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