Husband working in south, wife in North

M

mouse1

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This is a new but welcome situation, because we live in the South but were both paid in sterling - which means with currency fluctuations we have sustained a 25% pay cut.

Just wanted advice about what happens about taxation? She is taxed in the North, I will be taxed in the South.

Will I be entitled to Married Persons Tax Credit?

Is it best to be taxed seperately?

Can you be taxed as a couple?

If so, can she be potentially taxed twice?
 
If your wife is resident in Ireland, but working in the North, she is liable to UK PAYE, but in addition, taxable in Ireland, but will get relief for any UK tax paid. However, if she qualifies under the relevant rules she may be able to get "trans-border relief".

Due to your circumstances, it is best for you to claim only single tax credits, otherwise there may be further liabilities to be paid each year.

Separate Assessment will not change the matter as the overall liability will be the same as under joint assessment.

It is best to get professional advice on this.

www.taxingtimes.ie
 
I completed Form 12A Application for Certificate of Tax Credits and ticked the Married Persons Tax Credit option, also put my wife's work details on the form (because this was requested). Didn't realise this could impact on her however. I don't see why she should be taxed, in fact when I told her she was quite angry that she could be taxed twice. Is this really the case? I can't believe it, because she already pays tax and national insurance, and has never paid any money to Ireland before, only the UK.
 
She won't be taxed twice - but she will be taxed in Ireland and get credit for UK tax paid - that is the purpose of double tax agreements.

However, she could be better off claiming cross border relief if she qualifies.

www.taxingtimes.ie
 
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