Single Earner

J

joshea

Registered User
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I am a single earner of ca 40k

I have all of my wife's tax credits

My wife stays at home to look after our 3 year old baby

The question is

Would we be coming out better from a tax point of view if my wife was to work even a few hours a week.

Apart from the obvious extra income would I have access to more of a tax free sum.

At the moment as far as I am aware there is tax free money that i cant access !!

Please advise
 
joshea said:
I am a single earner of ca 40k

I have all of my wife's tax credits

My wife stays at home to look after our 3 year old baby

The question is

Would we be coming out better from a tax point of view if my wife was to work even a few hours a week.

Apart from the obvious extra income would I have access to more of a tax free sum.

At the moment as far as I am aware there is tax free money that i cant access !!

Please advise
Click to expand...

There is no tax free money for you personally to access, if as you say you have transferred all the credits possible from your wife to you.

However, what you may be getting at is that she can still earn €8,250 this year as a PAYE worker without her being taxed.

This is because if she starts working in a PAYE job, she becomes entitled to the PAYE credit (which has a max. of €1,650). this credit isn't transferable, so she either earns money in her own name against which this credit is used up, or the credit is lost.

EDIT: However, you should be aware that if you are claiming the Home Carer's Tax Credit (which ye should be if she's a stay at home mum), then you may lose some or all of this credit if she goes back out working. The optimum position would generally be if she earns about €5k in her own right.
 
@joshea

You have been given good information. The gem is what madletrot mentioned - your wife would get a PAYE allowance and makes the earning tax free for the first €8250 - thats the nub of the matter. Go for it.
 
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