Thanks @S class - that makes sense.If you are jointly assessed, when you submit your form 11 all your income including earned and rental will be totalled up and the tax will be deducted in the most efficient manner. The full amount of your joint 20% band will be used and any remainder will then be @ 40%.
It doesn't matter how you set up your credits and bands.
The only slight problem you will have is how to distribute each person's share of after tax income after submitting form 11.
Thanks @S class!You just fill in the pension and AVC amounts for each partner. It doesn't matter what relief was given from wages. If only 20% was given from one person's wage it will balance out when the form 11 is submitted. There would be a tax refund due.
The only limiting things are the total age related pension tax relief for each partner and the amount of available 20% tax band that can be transferred between partners. The maximum allowable 20% transferrable tax band will be automatically calculated on form 11.
It doesn't matter if you don't set this up properly yourself.
The only way you would end up getting 20% relief would be if you run out of income taxable at 40%.
You could always hold off making some AVCs from income and paying a lump sum after checking out what the maximum allowable tax free pension contribution is. This will be calculated by form 11. You can then pay in whatever amount is still allowable and add this to your form 11 before submitting it.
Form 11 is a useful tax calculation tool. You can play away with it before submitting it.
You can add different pension contributions to check exactly how much can be added to gain the maximum tax relief.
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