PAYE/Tax - Is it worth Spouse working extra half day?

W

Winter Miles

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Hi, my wife currently works 2.5 days per week. She is a nurse and was full time until last year when we decided it was better for our 3 young kids for her to be around more. However we are feeling the pinch of the loss of her wage.

She is thinking about going back to 3 days per week so an extra .5 day.

We are presently jointly assessed each year. I earn 60k per year and have 14k rental income from Inv Prop (that was a good idea!).

Can anyone work out the figures as to how much better off she will be by doing the extra half day! Seems simple but if she is being taxed at the higher rate it may not be worth her while after we pay the additional .5 day child care.

Figures:
1137 gross every 2 weeks (2.5 days part time)
904.67 net

Childcare will be an additional €50
If you need any other numbers just shout and I'll provide.

Thanks
 
Doesn't sound worth it.

An extra half day would be 113 per week extra, gross. She's just in the higher bracket since you're jointly assessed.
So reduce 113 by tax, and the extra childcare and she'll have another 10 quid a week or so.

Have you checked the allocation of tax credits and bands between you, to make sure you're maximising the 20% tax band?

You're earning 90k between you (excluding investment income). Might be time to start looking at out goings as you should be comfortable on that.
 
Thanks Red for the advice.

How do I check if I'm maxing the 20% tax band? Just had online accountant do my 2017 return. What should I look for on form 11 or on ROS?

Squeezed middle here I'm afraid. 2k on mtges, 1k on childcare, not much left after bills, car running costs and day to day living, little or no social life, no dining out, we don't spend anything on ourselves, only basic clothing. Family holiday once every 2 years and it's not abroad. Just handed over 4k in tax on rental income. We survive pay pack to pay pack. Rant over. :D
 
You should be able to view your tax credit certificates online. You should check your wife's to see what her standard rate cut off point is.

It might be 34,550, but as she isn't earning this much you could reallocate the band's between you.

I didn't mean to cause any offence re outgoings - we've made the sacrifices as well, but cut down to 1 salary completely. It was tough for a few years.
 
I recently rang the tax office and asked them to move my wife's tax credits/bands to me. The very helpful person did the maths and moved most of my wife's credits to me and left her with just enough. He also did something with the bands but mentioned that there was a minimum that she had to keep. This was all done over the phone.
We had done this earlier in the year but when we got an amended tax credits cert sent recently the figures on the amended cert had defaulted back to the normal 50/50 split so it is worth while keeping an eye out for this.
 
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