Should we transfer credits?

M

mickthehack

Guest
Hello,

I wonder if I could get some advice here; I've looked on the Revenue site, but it just give me a headache.
Here's the situation: My wife stopped working last November to look after our child. I rang Revenue and got her tax credits, starting from this month.
But now she has gotten a part time job and I wonder should she get her own credits back or should I keep them.
I earn €85,000. Her job is part time and will be paid €17,000.
Also, it may only be for three months.

Any help or advice would be greatly appreciated.

Thanks.
 
your wife will get a paye tax credit so depending on how much she is going to earn, I would leave her personal credit with you and allow her the paye credit which cannot be transferred to you. she will also get additional standard rate band as you would be classed as married couple with two incomes instead of married couple with one income.
 
your wife will get a paye tax credit so depending on how much she is going to earn, I would leave her personal credit with you
Click to expand...

I would agree with deem on this one.
 
So, I take that my wife would be taxed at 20% on her earnings if I took all her credits?

[Edit: I've just found out it will, obviously, be at 40 per cent. Ah well, I still think it's better]
 
As far as I can see your wife can earn up to 25K and only paying 20 % tax on it.

If you got her Tax Credits and the maximum cut off point of 43K, then your wife can still earn up to 25 K on the lower band. She will also still have her PAYE Tax Credit of 1560 a year, as this cannot be transferred.

Have a look on Revenue.ie, There are a few examples in the Leaflet "
Taxation of Married Persons".
 
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