Personal Tax Assessment

[Newbie!]

Upfront, I'm utterly clueless about tax but I really need to get my ducks in a row. I'll give the background:

Spouse: Public Servant, Gross income €48k, FTE
Me: Public service, Gross income €58k but now working on a .5 contract so that reduces to 29k. I also do a tiny bit of privately taxed work which earns €800/month. I'm making my first tax return on this, this year.

To date, my spouse and I have been jointly assessed. Given the above information, should I change this? Please let me know if any other information would be helpful to answer this.

 

[T McGibney]

To date, my spouse and I have been jointly assessed. Given the above information, should I change this?

Why on earth would you wish to opt out of joint assessment? It is never advantageous, tax-wise, to do so and it only makes sense where there are wider considerations eg irretrievable relationship breakdown.

 

[Newbie!]

Ok, spot my ignorance now Rather than opt out of joint assessment, I suppose I meant if I should change how we are assessed from 50:50 to a different weighting? Are we even assessed 50:50 or did I make that up? Really sorry here, I'm a bit embarrassed by my sheer lack of knowledge.

 

[T McGibney]

Ok, spot my ignorance now Rather than opt out of joint assessment, I suppose I meant if I should change how we are assessed from 50:50 to a different weighting? Are we even assessed 50:50 or did I make that up? Really sorry here, I'm a bit embarrassed by my sheer lack of knowledge.

It's ok. 50/50 weighting of what, though? You have income, your spouse has income. Under joint assessment both incomes, along with your respective credits and other entitlements are pooled, which often is advantageous in terms of reducing your joint liability and never disadvantageous. It's all very simple and I suspect you might be overcomplicating it.

 

[torblednam]

It's ok. 50/50 weighting of what, though? You have income, your spouse has income. Under joint assessment both incomes, along with your respective credits and other entitlements are pooled, which often is advantageous in terms of reducing your joint liability and never disadvantageous. It's all very simple and I suspect you might be overcomplicating it.

C'mon Tommy, you're a bright guy, do you honestly not know what the OP might be confused about as regards a 50:50 split... (hint: it starts with "tax credits" and ends with "and standard rate band"..! )

OP, it appears you're talking about, as Tommy alluded to, you and your wife's tax credits and standard rate band (the amount you can earn before hitting the 41% rate of tax).

When jointly assessed you can allocate a portion of each individual's tax credits/rate band to the other if you so wish - this is most useful when one spouse earns nothing, or so little that their tax credits would otherwise go unused. In your case, as you both earn enough to individually use up all of your tax credits, and both will be paying tax at the 41% rate on income, a 50:50 split is as efficient as any other split really.