Married taxation - some cases and queries

xeresod

Frequent Poster
Messages
226
In most situations when I've came across married people assessed as single individuals, the couple were seperated (especially before divorce was leagalised). Their reason for choosing seperate treatment was simple - why give their credits/allowances to their ex or allow their ex to have knowledge of their current circumstances, especially if their ex was a person they may not have had contact with for years or a person they hate.

Also, not everybody is logical and reasoned and don't care if they may be missing out, they want seperate treatment and that's that!
 

BIG

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Messages
41
One reason to keep them separate is that AFAIK the capital gain exemption limit is not doubled in joint assesement, so if bother spouses have shares/investment they would have an exemption of 2 x1270E rather than 1x1270E.
 

ClubMan

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43,872
No - this is wrong. CGT is individualised in any case and the personal annual exemption is never transferrable between spouses (it used to be years ago). Married income tax treatment has no relevance to CGT issues. What matters is whose name(s) the assets in question are held in. It may make sense for married couples to transfer assets between each other to avail of both CGT allowances. For example...

Transferring shares to spouse to reduce CGT
 

lasertek

Registered User
Messages
12
Hi

Quick question if you got married a few years ago and did not tell the tax man can you claim tax back retrospectively as if using Joint Assesment for those few years? I know you can go back 4 or 5 years retrospectivley for other tax refunds!!

Cheers
 

ClubMan

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43,872
The normal 4 year limit on backdated claims will still apply. I think that there may also be another rule which requires you to opt for your preferred married taxation before March 31st of any specific tax year so it's possible that you may not be able to backdate claims for married taxation refunds (e.g. claim joint/aggregated or separate married assessment for previous years in which you were taxed as two individuals). Best to just write to Revenue explaining your situation and asking them to see if they can rebalance your previous tax years for the preferred married treatment. See this FAQ.
 

Clarkey

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Messages
252
Hi

Quick question if you got married a few years ago and did not tell the tax man can you claim tax back retrospectively as if using Joint Assesment for those few years? I know you can go back 4 or 5 years retrospectivley for other tax refunds!!

Cheers
If you are on seperate assessment there is still the option to transfer unused credits and/or cut offs after the end of the tax year. If you have elected for seperate treatment this option is not available.

All you need to do is ring the tax office quoting both your tax numbers and they will issue P21s as long as they have all pay and tax details on record. 2003 is the last year that a review can be requested for at this stage so any refunds due for years prior to this are now lost
 

ClubMan

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43,872
If you are on seperate assessment there is still the option to transfer unused credits and/or cut offs after the end of the tax year.
But it sounds like not only are they not on joint/aggregated married assessment but neither are they on separate (married) assessment but rather they are on assessment as two individuals in which case there is no transfer of credits etc. possible.
 

Clarkey

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Messages
252
But it sounds like not only are they not on joint/aggregated married assessment but neither are they on separate (married) assessment but rather they are on assessment as two individuals in which case there is no transfer of credits etc. possible.
All they have to do is ring revenue and inform them. They never opted for seperate treatment so the option is still there subject to time limits already mentioned. Dealt with exact same situation recently for a couple married but not on record with revenue as being married. Took around 12 phonecalls in the end (As usual) but he definitely can do this.
 

ClubMan

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43,872
Can they backdate the (joint/aggregated or separate) married taxation for the previous 4 tax years so? Presumably no more than the normal 4 years though?
 

Clarkey

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252
If you elect for seperate treatment no credits or cut off can be transferred and this is the case for previous years. If you elect for seperate assessment then reviews can be done for previous 4 years. If married couple never inform revenue they are married then refunds can be processed for the previous 4 years also.

Many people also don't realise there is a year of marriage credit which works as follows:

If you are married in July 2004 you are taxed as a single person for that year. However after the end of the tax year the tax payable as a married couple is calculated and the difference is refunded on a pro rata basis e.g. married in July 2004 deemed to be married for half the year so half the difference in tax is refunded.
 

Aisling2323

Registered User
Messages
17
its easy really! Men, and their solutions!!!!!

here is the answer:

both earning 20k - they pay lower rate on everything as they are less than 43k (SRCOP for 2007) Lower earner is not earning 25k and therefore individualisation would not kick in, but its irrelevant in this scenario as total aggregate income is less than 43k.

both earning 30k - again, they pay the lower rate on everything as the lower earning spouse is earning at least 25k (therefore individualisation kicks in) Their new tax band is 68k in 2007.

both earning 40k - one of them pays lower rate on everything. This leaves 28k left over on individualisation. Therefore the other spouse pays the lower on 28 k and the higher on 12 k ...

easy??
thought so ..

The April edition of Business Plus drew my attention to this really cool article on individualisation (http://www.ionainstitute.ie) and now after reading it I'm answering all the tax individualisation questions on the net - befoe my boss comes back from his tea break (uuurgh!!!!)
 

Aisling2323

Registered User
Messages
17
btw a couple each earning 50k works as follows:

One pays the lower until 43k and the higher on 7k

The other spouse pays the lower on 25 k and the higher on 25 k ..

easy!!!!!!!!!!!!!!
 

Headachecity

Frequent Poster
Messages
213
Just wondering, are my and my hubbie mad?!. We got married last May and still haven't got around to ringing the tax office, we both earn €40k per annum, so we are not really missing out on anything.
I don't think that you are missing out but no harm in informing Revenue anyway just in case your circumstances change in the future and, for example, married joint/aggregated taxation might be more favourable to you.
Thing is, once we tell them does my PPS number end and we both use my husbands or are so we still have 2 seperate PPS numbers?.
You retain your existing PPSNs.
Also, I do all family/finance etc sort of things as Mrs X and in work I still use my maiden name, pps number tax etc still in maiden name & so is my Visa card. Is this wrong of me?.
No - there is no onus on married women/couples to change their names.
 

Aisling2323

Registered User
Messages
17
YES! YOU ARE! A LITTLE! Ring the revenue. Fill out a tax form and both of you sign it. You will each keep your seperate PPS numbers. Inform revenue of your new married name. When you submit your P60's for last tax year inform them that you are married. You will be entitled to a lot of tax back!!!!!!! that is the good news. Your rates are completely different as a married couple. They move from 34k to 68k in 2007 (2006 figures were a little different, can't remember exactly) i'll do a calculation and let you know what the figure is ..
 
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