Going from Married Couple Single Income -> MC Double I

S

Slaphead

Registered User
Messages
321
Hi all, just hoping for a bit of clarity on this.

Up until the end of august this yr we were a married couple with a single income, ie anything i earned under €45,400 was at the standard rate, 20%, anything over was at the high rate, 41%.

From Sep 1st she'll be working aswell, but will probably only earn €8000 gross for the remainder of the yr. My wage is looking like €52k for the yr.

Does this mean i can do loads of overtime and get it at the standard rate (20%) for the remainder of the year?
 
No, the increase in SRCOP is non-transferable between spouses - your wife's income up to 19,000 will be taxes at 20% but 45,400 is the maximum lower rate band for a person. Her remaining 11,000 lower rate band is lost. She will also have paye credit of 1,830 so will only pay about 170 in tax.
Sybil
 
So no matter how much/little she earns were not really taxed together and whatever i earn over 45,400 is on the high rate. I thought that there was some way of transferring her credits to me?
Is that €170/ month she'll pay alltogether? Leaving her with a takehome of
20,000 / 12 = €1667 - €170 = €1497/ Month
 
You are taxed together, it's just that you cannot have any spouse earning over €45,400 on 20% tax. Revenue have a table here
 
You are taxed jointly in that a single person would be paying the higher rate above 36,400 and you have 9,000 of her SRCOP. She cannot transfer the remaining 27,400 (my 19,000 figure is out of date) to you. Also, you have the benefit of her personal credit of 1,830; her paye credit of 1,830 only exists if she has a paye employment to put it against. It's all here.
The 170 is her likely tax bill for 2010 based on earnings of 8,000 and only paye credit. She may also be liable to income levy and prsi.
Sybil
 
Last edited:
thanks lads, I think I have it now, I thought we could earn up to 74k on the low rate even if i earned 54k and she earned 20k, thanks for the clarification. Ill go easy on the overtime so.
 
You must log in or register to reply here.
Back
Top