Best division of tax credits/bands

A

ACD13

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I'll keep this as brief as possible
Husband earns anywhere from €70K - €85K a year
I am employed but on maternity leave at the moment on state benefit only - usual salary is €28K set to rise to €34K after I return to work

We're joint assessed & have divided credits as follows;
Spouse €3,667.40 (incl medical insurance relief)
Myself €3.300 (reduced to €552.81 taking into account tax on maternity benefit which they say is €2,777.19 - but I don't know how this is calculated)

Rate Band 1 is €65,600 reduced by maternity benefit €13,885.99 (my entire maternity benefit is only worth just over €6K) so rate band 1 is €51,714.01 WTF is going on there??

So our certs read- tax credits-spouse-yearly €3,668, monthly €305.67, weekly €70.54
Myself-yearly €523.00, monthly €43.59, weekly € 10.06


Can anyone make sense of all this for
me, have we our credits & band divided as best as we can?

Also my cert says I'm on a week 1/month 1 basis? What does this mean, would have been like this since I started my current job in June 2012




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Maternity benefit is now a taxable source of income. To ensure that it is taxed the income is included in your tax credits certificate for the year. It appears that when including the amount someone has made a mistake and included the wrong amount. If you ring Revenue PAYE section they will probably fix it.

If you are returning to work and will earn more than €10,500 in the year 2014 then you will use all your credits so the split will work out fine in the end.

A week one / month one basis means that each week is treated separately ie you will not get the benefit of any unused credits and standard rate cut off band when you return to work in your weekly payroll. You can ask to have this changed to a cumulative basis when you ring to have the amount of maternity benefit changed.
This would balance itself out if you requested a balancing statement after the year is over.
 
It seems a rather drastic mistake the band reduction amount is almost double what my maternity benefit is worth. Is hubby suffering due to this reduction? As a lot of his income is in d higher tax bracket.

Going forward how much of my rate band do I need to retain for myself?

Are we entitled to any credit for our daughter?


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It's more likely to be a computer error on the transfer of info from the DPS to Revenue.

Your husband is insulated from this as you have transferred the max of €41,800 to him. You should get your standard rate band less the correct amount of maternity benefit allocated to your employment on a cumulative basis.

Given your income there are no extra credits for a child.
 
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