Joint assessed - what is causing difference please?

[MeathCommute]

We are jointly assessed for tax. I was a PAYE worker but left job at end of 2014 on VR.
My wife is self employed

I was a PAYE worker up to 31/12/2014. My P60 shows final income of 76,979. Total pay for USC purposes is 78,596.
Tax paid 17,833. PRSI paid is 2,736. USC paid is 4820.

My wife is self employed. Her nett profits after EXPENSES is 10,474 for 2014. Her capital allowances are 1030 (all for 2014). Our health expenses tax credit for the year came to 120.

Our accountant worked out that our extra combined tax bill for 2014 was 2264 (including my wife's minimum self employed PRSI of 500)

However, I worked out myself what my wife's tax bill would be as on her own, and it works out at €232 tax and PRSI of €500. Why is there such a disparity between the joint amount we owed, and what she owes for her self employed income ?

Is the difference attributable to my tax situation ? As PAYE, I would have assumed that my tax was taken correctly at source

I can't figure it out. Any guidance would be much appreciated

 

[T McGibney]

Have you established whether you've underpaid PAYE? I wouldn't necessarily assume at any stage that this has been done correctly. If you can establish what tax credits you 1. were allowed 2. are entitled to, it might answer your question.

 

[MeathCommute]

Thanks for that Thomas. Just pumped my gross taxable into a tax calculator for 2014 and it looks like my tax owing was over 19k and not 17k. Take that 2k and add it to the 232 tax and 500 prsi for my wife, and the figure is very close to the figure that my accountant came up with. I was going to ask my accountant about it, but I have been plaguing him recently for other stuff, and I didn't want to ask him, as I was afraid he would think that I was accusing him of fiddling us. Funny thing to say, I know. I just would prefer to work it out on my own bat. The only other thing is that our tax bill most years is around the 2k mark, while my wife has an income of around the 10k mark. I wonder does this mean that MY tax has been undercalculated every year ? I'm shocked if that's the case. I was working as a PAYE worker for a reputable organisation.

 

[MeathCommute]

Actually just spotted something. Looking at my final payslip, my tax credits are showing as €4,950. This would equate to tax of €17k approx. Does this mean that my wife does NOT get any tax credits, and I am using them all ?

 

[DB74]

Actually just spotted something. Looking at my final payslip, my tax credits are showing as €4,950. This would equate to tax of €17k approx. Does this mean that my wife does NOT get any tax credits, and I am using them all ?

Yes that is correct, and this was probably the case for 2015 as well, and will be for 2016 unless you change it.

 

[MeathCommute]

Yes that is correct, and this was probably the case for 2015 as well, and will be for 2016 unless you change it.

Thanks DB74. Won't be a problem. I am unemployed now !