How much to make it worth my while?

E

eiko

Registered User
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Hi,

I am considering doing some part time contract work for and old employer so would need to get myself set up as a company/sole trader. At the moment I am a stay at home mum so my tax credits have been transferred to my husband who currently earns 62k p.a. We get the carers tax credit annually. My question is, how do I calculate how much I'd need to earn so at not to adversely impact our family income through the loss of tax credits. The contracting may only turn out to be a short-lived thing so I want to avoid suffering the impact of it for years to come.

Thank you.

E
 
Home carers tax credit is (this year at least)€810.This is the amount your tax bill is reduced by per annum while you are not working.So,if say in the next tax year,you can earn about €8000 tax free,leaving you €7190 better off.
 
Thanks, but if I start working as a self employed person, do I not lose my PAYE tax credits which my husband now has?
 
Paye tax credit is non transferable.Your husband would have your personal tax credit.If you earn less than €5080 on the year,you can keep the home carers credit.
 
If you are likely to earn much more than €5080,you can forego the home carers credit and claim increased standard rate tax band (€23000).If you earn marginally above the €5080,there is a reduction of the h.c. credit.In practice,the revenue will compute which is more beneficial.
So finally to your question,you won't be worse off!
 
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