Can my wife claim my unused credits?

P

poordad

Guest
Hi all,

I am married and self employed, my wife is PAYE
My wife and I are taxed under separate assessment.
My form 11 return for 2009 showed that I just broke even and owed nothing to revenue.

My wife requested my unused tax credits, but was told it was not possible to claim a refund or transfer my credits to her as we are separately assessed.

Does this sound right?

Thanks for any replies or advice.
 
Yep it is exactly right if you are seperately assessed - revenue see you both as two distinct people. You should elect for joint assessment.
 
Thanks for the reply Kenny.
Very disappointed by that, does that mean we've lost out on 2009?
I always thought you could transfer unused credits at the end of the year, is this a recent thing?
 
It sounds like one of you has opted for Separate Treatment. AFAIK this claim cannot be withdrawn after the year end.

It would be preferable in the case where one spouse is not liable to pay tax and the other is to opt for either Separate Assessment (both get reviewed after year end and unused credits/SRCOP transferred at that stage) or Joint Assessment (credits and SRCOP allocated advantageously during the year).

Who advised you to claim Separate Treatment? In my experience Revenue generally advise against it under normal circumstances. I have really only seen it when the marriage is in trouble.

Sybil
 
Thanks guys.
We never opted for "separate treatment" separate assessment yes.
The letter from Revenue to my wife even states "I am unable to transfer unused Credits and SRCO to you for 2009 as you are separately assessed from your husband"

!!!!!!!! What gives?
 
Ring your local tax office. You can find out the number by popping your pps # into the contact locator on the front page of revenue.ie.
 


If you now file a joint tax return (eg Form 12) this will normally resolve the problem. Even though Revenue can technically refuse to retrospectively change couples' status to joint assessment, I have found that they usually accommodate jointly-filed returns in such cases.
 
Thanks again for the response all, I really appreciate it.

Am I right in saying that under "separate assessment" we could indeed transfer the credits?

This is from the Revenue site:

"What happens under Separate Assessment to tax credits not fully used by one spouse? Any unused tax credits (other than the PAYE tax credit and employment expenses) and standard rate band up to €45,400 can be transferred to the other spouse, but only at the end of the tax year. The increase in the standard rate band of up to €27,400 is not transferable between spouses. If you think you have unused tax credits or standard rate band, you should contact your local Revenue office for a review after the end of the tax year. It is important to note that, overall, the amount of the tax payable under Separate Assessment is the same as that payable under Joint Assessment"

If we can, I really don't understand why they denied us, possible mix up their end??

Will ring them myself tomorrow (probably to be told that my PAYE wife needs to make the claim again)
 
Just off the phone from Revenue.
It appears that I can transfer the credits.
There was a bit of "miscommunication" somewhere along the way!!

Have requested transfer in writing and will post back the result.

Thanks again for the help.
 
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