Should we change to joint assessment?

K

keff

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Up til 2008 My husband and I both earned 65K and about 2K each on rental income, interest and dividends so we kept separate tax assessment.

Then I went on maternity leave and was taken back on 3 day week due to cutbacks in April 09 so salary now 39K and I get c 80 euro per week on social welfare as reduced hours.

Now another element in the mix- Baby on the way.

So Current position:

Husband earns 65K PAYE plus 2K other
I earn 39K per annum, 2K other income, plus social welfare 78 per week

I will only be working 9 months this year and next as will be going on maternity leave in September.

I rang Revenue and they said that no point changing to joint assessment unless I earn less than 36,400, which I will the next 2 years.

Should we change to joint assessment (ok sounds like no brainer due to revenue advice)- is there any catch or anything I need to know...will we get caught with levies or PRSI or something?

Thanks in advance for any advice
 
Separate assessment is fine on a week to week / month to month basis , as the tax credits are divided equally between you .

However , when you apply for your P21 at year end , the tax office will normally give you whichever assessment is most favourable to you .

This will be determined by your circumstances / income throughout the year .

If you feel your income ( spouse ) is going to be less than 36,600 = ( 3660 x 2 x 5 ) then you should change to joint assessment
 
Thanks all.

Yes, Bronte is right, I get jobseekers due to work putting me on reduced hours, I think it lasts about 12months and its based on my prsi.
 
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