help taxation self employed & paye married couple

S

selfemp

Guest
Hi,
This is my first post and I need some help with tax based on our cicumstnaces. I just can't work it out and have been told different things by different people.

Here is our situation:

me
self employed
gross income 35,000 per annum

Spouse
paye employee
gross income just under 15,000 per annum

Currently we are jointly assessed.

We have tax credits of 6314 euro together. That included spouses paye tax credit.

Spouse pays no tax at present so uses no tax credits.

One person has told me that I can use all tax credits against my income. Someone else told me that I can't.

Are our incomes added together and then taxed as if this is the case we would pay more tax.


If anyone has any idea I'd be very grateful!!!!!
 
You cannot use your spouse's PAYE credit- it is a non-transferable credit, so even though your spouse doesn't use it due to low earnings, it's not available for you to reduce your tax.
 
Well,

You are assessed jointly on your combined income of 50,000.
You will get the credits that you and your wife are entitled to so Married persons Credit 3660 and PAYE credit 1830. You may have other credits Refuse / Rent to bring you up to E6,314.
So your Income tax will be 50,000 x 20% = 10,000 - 6314 = 3686
There is PRSI 3%, Health Levy 3.33% & Income Levy 1.67% on your self employed income.
Hope that helps.
C.
 
Thanks

Hi Joe_90 thanks so much for the info. I'll have a crack at working it out tonight..
Or maybe I'll just have a beer....
 
selfemp said:
Hi Joe_90 thanks so much for the info. I'll have a crack at working it out tonight..
Or maybe I'll just have a beer....
Click to expand...

What way are your tax credits broke up at present(What way are your tax credits allocated)

You-

Her-

What is break up of married credit?

Also what is self empoyed gross income - is that income less expenditure

Do you have any capital allowance to use
 
We got married this year, and I am self-employed (and do my own, fairly simple accounts), and my wife is PAYE.

We are both earning over €32,800 (though in my wife's case, only due to overtime), and therefore both paying 41% tax on earnings over this figure.

So is there any point in opting for joint assessment (esp. given that this may be a bit complicated since I'm am self-employed and do my own accounts, which will presumably become a little more complex)?

Also, are we obliged to inform the revenue that we are now married?
 
invest-or said:
So is there any point in opting for joint assessment (esp. given that this may be a bit complicated since I'm am self-employed and do my own accounts, which will presumably become a little more complex)?
Click to expand...

There may not be any particular point in opting for it, but having to put your wife's P60 details onto the form hardly adds a whole heap of work to your tax return?!
 
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