Should l give my tax allowance to my husband?

C

clon2562

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Excuse my ignorance here, neither of us have a clue about tax, so hoping someone can advise us. I am not working, on invalidity pension for many years, unable to work in future. Husband is paye employee. Mid 60s, no savings , paying a large mortgage.
Husband got a letter to complete his tax returns . Logged into My Account, and it shows an underpayment of tax, plus we appear to be separately assessed. Should l give my tax credit to him? I am worried if l do so l will be hit with a tax bill for my invalidity pension with no means to pay it, or would it be better for us to be jointly assessed? Grateful for any advice.
 
I have no advice re the tax issue but do you have spare rooms in the house you can rent out for cash?
 
You should change to joint assessment to make the most efficient use of your tax bands and credits.

You can leave your own credits and tax bands as if you were seperately assessed and at the end of each year he should submit a statement of liabilities on myaccount and both of your tax bands and credits will be shared in the most tax efficient way possible.
 
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Thank you for replies. I would have added a thumbs up emoji if l could have worked out how to do that lol. I wonder if we can complete the statement of liabilities now for the past few years? Perhaps there might be less tax due if we could do that.
Unfortunately, renting a room isn't really an option. Mortgage repayments big not due to house size, but fact that its been sold to a vulture fund, unfortunately.
 
clon2562 said:
I would have added a thumbs up emoji if l could have worked out how to do that lol.
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New users can't do that until they've built up some sort of posting history. It's explained in one of the threads here:

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Please note the following important information regarding what tax credits (they're no longer called allowances) you may be able to transfer to your spouse.

As I understand it, your position is as follows:

1. You have a personal tax credit of €2,000 and an Employee Tax Credit of €2,000.

2. The maximum invalidity pension payable in 2024 was €237.50 a week, that's €12,350 a year. Add on the Christmas and October bonus weeke and that becomes €12,825. The Income Tax due on €12,825 @ 20% is €2,565.

3. This means - assuming that you received the maximum amount of Invalidity Pension last year and that you're not over 65 - that you'll have a tax credit of about €1435 available to transfer to your spouse.


[Amended in the light of S class's comment below]
 
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Marsupial said:
2. This tax liability means that you will exhaust all of your personal tax credit (which otherwise would be transferrable to your spouse) and some of your employment tax credit (which is non-transferrable).
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@clon2562 can exhaust all her employment tax credit and just use part of her personal credit.

The remainder of her personal tax credits are transferable to her husband.
 
S class said:
[She] can exhaust all her employment tax credit and just use part of her personal credit.

The remainder of her personal tax credits are transferable to her husband.
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That sounds much better, thanks. My understanding was that Revenue simply subtracted the value of her IP straight from her TCC, leaving her with an non-transferrable credit balance.
 
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