married and living south spouse works in north

Hello,

Myself and husband married in July of 2009 and I somehow overlooked the existence of married tax credits due to himself working in the north. Im finding it very difficult to work out our entitlements as our situation is a little more complicated. I would appreciated any light that can be shed. Like everyone Im searching for any extra cash I can claim in the current economy.

My income: 48,726 euro (public sector)
spouse: 22,000 sterling (pays tax in the north and has always worked there)

Can we claim marriage tax credits or do I have to continue to claim single as he is paying tax to the north? We have mortgage together in the south and qualified for TRS on it.

If I can claim can anyone work out if I would be better off?
Also if I should have been claiming last year and didn't can I back claim?

I hope this makes sense. I really appreciate any information and guidance on this matter.

Ellamc

Hi there

I have done a few cases like yours and the advice from Revenue has always been that you cannot claim the married tax credit if your spouse is working in the North, you can if your spouse is not working.

This makes sense to me as otherwise you would be getting the benefit of three tax free allowances.

I hope this helps

Tomorrow

Hi ,

Thanks for the very swift reply. I understand your note about not getting the benifit from the two tax systems. I thought that my husbands pay would be taken into account in terms of working out my tax credits as a married person living working and paying tax in the south, otherwise him working in the north means im tecnically not benefiting from any tax system if you know what I mean.

Am I forced to be taxed as a single person because he works in the north?

You can still apply for a balancing statement (Form P21) every year, from Revenue. They will ask for your husbands P60 for the year and they will add your two incomes together and you will give you the married tax credit. He will get credit for any tax paid in the North and you will get refunded if you have overpaid.

Please note that it can work the other way as well though if you have underpaid!

thanks so much,

One last question. I know there are lots of tax calculators around. Is there one to suit my situation?

My spreadsheet will calculate for public sector workers. Karl Grabe's java form will also work for public sector staff who joined after April 1995 (but not prior to that).
However neither will calculate for your husband's situation and I'm not aware of any online calculator that deals with that type of scenario.

Download the spreadsheet at http://taxcalc.eu/monthlyss
Karl's form: http://taxcalc.eu