Should we hold off getting married

Discussion in 'Tax' started by Houseseeker16, 8 Jan 2019.

  1. Houseseeker16

    Houseseeker16 Registered User

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    My partner and I are engaged to be married. We have 2 young children. We own a house together (joint tenancy).

    My partner has suffered from a chronic illness (but not life limiting) for the last 4 years that has left him unable to work but he does get invalidity benefit if approx 10k per year.

    My salary is 70k - we are managing on my salary plus his benefit to still pay mortgage, childcare, doctors fees and medications etc

    My question is whether we should go ahead and get married. I know this is best for inheritance tax purposes for the house etc however I am worried if we did get married and invalidity benefit became means tested that we would no longer qualify. Has it ever been means tested in the past?

    What would be the immediate financial benefit of getting married - invalidity benefit is classed as income according to the CAB so has this used up my partners tax free allowance anyhow?

    Thanks in advance
     
  2. DB74

    DB74 Frequent Poster

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    1,591
    In terms of tax, as far as I can see the only financial benefit would be €3,100 additional take-home salary (assuming the invalidity pension is €10K exactly)

    €9,000 of you salary would be taxed at 20% instead of 40% = €1,800
    Additional tax credit currently unused by your partner = €1,300

    You won't get the home carers credit (apart from maybe €100 a year) as your partner's income is too high

    There are other concerns though, such as loss of medical card (if your partner has one)

    I can't personally see the invalidity pension ever changing to being means-tested
     
  3. Protocol

    Protocol Frequent Poster

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    2,845
    Houseseeker16,

    this is an Irish website.

    I say that as there is no such welfare payment as Invalidity Benefit in Ireland, so you may be based in UK?
     
  4. Houseseeker16

    Houseseeker16 Registered User

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    18
    No we’re irish - sorry it’s called invalidity pension not invalidity benefit.

    He doesn’t have a medical card as that is means tested for cohabiting couples I believe and we dont qualify qualify.
     
  5. Houseseeker16

    Houseseeker16 Registered User

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    18
    Thanks for your responses - am realizing I don’t have a clue how tax credits actually work so off to research!
     
  6. cremeegg

    cremeegg Frequent Poster

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    2,674
    And they say investment decisions shouldn't be tax driven. :rolleyes:
     
  7. Houseseeker16

    Houseseeker16 Registered User

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    18
    Not much of an investment!!! :p But lovely partner and wonderful dad
     
    cremeegg and Buddyboy like this.
  8. Mrs Vimes

    Mrs Vimes Frequent Poster

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    903
    If you are living together then your income would be included in any future means test for his pension anyway so if that is your only concern about marriage then I don't think it would make any difference.

    Also you can use some of his rateband and credits so it would be all up-side!