Only if they opt for joint/aggregated assessment rather than individual assessment or assessment as two single people.Andrewa said:I spoke to the Revenue yesterday and (I think!) they told me that one spouse HAS TO take at least 23,000 no matter what
The "both spouses working increase" in the standard rate band is never transferrable. Some other credits/allowances are not transferrable (e.g. PAYE credit as far as I know). Other credits/allowances are transferrable.In a Joint Assessment situation transfers cannot take place.
Protocol said:1. Both spouses earning 20k
Does one get a SRCOP of 41k, and the other gets 23k?
Ans: Both can opt for 32K SRCOPProtocol said:2. Both spouses earning 30k.
Does one get a SRCOP of 41k and the second person 23k?
If so, is the unused 11k from the first person lost?? Or can it be transferred to the second earner?
Or can they get 32k SRCOP each?
Ans: One spouse can take 40K and the other 24KProtocol said:3. What about a couple each earning 40k
Does one get 41k, and the other 23K, and so the 1k is lost??
Or can they get 32k SRCOP each?
Protocol said:4. What about a couple each earning 50k?
whats SRCOP
If i take the 38,400 allowance
Most married couples will be better or at least no worse off on joint/aggregated assessment. This is stated in the Revenue FAQ/booklet. Couples on individual assessment should be taxed the same although they may have to reclaim any overpayment of taxes at the end of the tax year. Couples on assessment as two single people may end up worse off and pay more tax. I have never really understood why any couple would opt for this treatment or possibly even the second one above. Maybe somebody could explain when these would be suitable?Lyndan said:ok thanks that makes a bit more sense!
So we are better off being jointly assessed then
Why cant they just tell you which way you would be better off!! then i wouldnt be sitting her with calculators trying to work it out...
My explanation in the previous post is based on a married couple taxed jointly. There is no second one?I have never really understood why any couple would opt for this treatment or possibly even the second one above.
The first two usually or always have the same results with the exception that under option (2) the couple may need to balance their tax affairs for overpayment tax at the year end. Couples can (and will?) end up worse off under option (3). This is why I don't understand why a couple would ever choose it other than to assert their independence on tax matters from each other or something...?asdfg said:My understanding is that if both couples are earning over the SRCOP then it does not matter what option they take and can even request to be taxed as individuals.
There is no one "married" option. There are three married options as outlined above.One benefit of opting for the married option is where one income drops below the SRCOP the non use of the SRCOP can be transfered to the other earner.
There is indeed a second and a third option as above.My explanation in the previous post is based on a married couple taxed jointly. There is no second one?
Couples can (and will?) end up worse off under option (3). This is why I don't understand why a couple would ever choose it other than to assert their independence on tax matters from each other or something...?
My explanation in the previous post is based on a married couple taxed jointly
15. What is Assessment as a Single Person?
Assessment as a Single Person, (also referred to as Separate Treatment) should not be confused with Separate Assessment. Under Assessment as a Single Person each spouse is treated as a single person for tax purposes.
Both spouses:
One spouse cannot claim relief for payments made by the other and there is no right to transfer tax credits or standard rate cut-off point to each other.
- Are taxed on their own income
- Get tax credits and the standard rate cut-off point due to a single person
- Pay their own tax
- Complete their own Return of Income form and claim their own tax credits.
I still can't understand why any married couple would opt for this unless they wanted to keep their tax affairs separate (or secret!) from each other for some reason?This basis of assessment [assessment as two single people] can be unfavourable in some circumstances because any unused tax credits or standard rate cut-off point cannot be transferred. Home Carer's Tax Credit cannot be claimed in respect of a spouse who cares for a dependent person and who may otherwise qualify for the relief.
I still can't understand why any married couple would opt for this unless they wanted to keep their tax affairs separate (or secret!) from each other for some reason?
Fair enough. I need to study/think about this a bit more.asdfg said:The revenue worked examples are based on an example of one earner over the SRCOP and one less than the SRCOP. Of course this will be unfavourable if individually assessed.
That was not my point. I don't care what way different couples handle their financial affairs. I just wondered why a couple would opt for assessment as single people. One possibility that I can think of is to do so in the year before SSIA maturity where the loss of any married tax "benefits" would be outweighed by the gain attributable to one or both spouses availing of the SSIA to PRSA transfer incentive. I want to crunch the numbers on this for our own situation (me working, wife not) and see if it might be worth doing so that my wife could avail of the offer and the benefits would outweight the costs.I agree everything in a marriage should be above board with nothing hidden.
Me too. Just wondering if/when assessment as single people is useful/beneficial.I am looking at the figures purely from the point of view of financial planning.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?