M
Marwood
Guest
Hi,
I am looking for some advice on tax rate bands please. This is my first post on AAM, so I will try to get it right but please be patient if I don't quite get everything right first time - thanks
I am a PAYE employee, as is my wife. Last year we decided to reassign the "unused" part of my tax rate band in order to use it against my wife's tax bill. This seemed like a good idea, as my salary is in the high 20's but my wife's is considerably higher. So far, so good.
However, I also had (taxable) rental income for last year (2010) and this is where I start to get a bit lost... I submitted my tax return for that rental income a couple of months ago and last week I got a tax bill of approx €1,500.
Of course that's fair enough if that's what I owe but I am just wondering (and this is really my question) if I could have reduced my tax bill by not reassigning the "unused" part of my tax rate band? In other words, by reducing my wife's tax bill, have I inadvertently increased my own because of the fact that I had rental income to account for?
I would really appreciate if someone could shed light on this for me please, as I find it quite confusing.
Thanks very much,
Marwood.
I am looking for some advice on tax rate bands please. This is my first post on AAM, so I will try to get it right but please be patient if I don't quite get everything right first time - thanks
I am a PAYE employee, as is my wife. Last year we decided to reassign the "unused" part of my tax rate band in order to use it against my wife's tax bill. This seemed like a good idea, as my salary is in the high 20's but my wife's is considerably higher. So far, so good.
However, I also had (taxable) rental income for last year (2010) and this is where I start to get a bit lost... I submitted my tax return for that rental income a couple of months ago and last week I got a tax bill of approx €1,500.
Of course that's fair enough if that's what I owe but I am just wondering (and this is really my question) if I could have reduced my tax bill by not reassigning the "unused" part of my tax rate band? In other words, by reducing my wife's tax bill, have I inadvertently increased my own because of the fact that I had rental income to account for?
I would really appreciate if someone could shed light on this for me please, as I find it quite confusing.
Thanks very much,
Marwood.