SRCOP Query

R

Robo

Registered User
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Hi. Here’s the story.

I’m married. My wife works one or two hour a week (to get a PRSI contribution.) I received my Notice of Determination of Tax and SCROP and noticed the noticed the Home Carers Tax Credit was missing. The Net SCROP was 68000 with 43000 allocated to me, and 25000 to my wife. As I understand the PAYE system, that is as it should be.

However after updating my details using ROS to claim the Home Carers Tax Credit, the Net SCROP was 43000 with 18000 allocated to me, and 25000 to my wife.

I intend to contact revenue, but in the mean time, can anyone explain why this happened.

Thanks
 
Robo said:
I’m married. My wife works one or two hour a week (to get a PRSI contribution.)
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In case it's of any use ... if you have kids then if she minds them full time she should qualify for the Homemakers Scheme which would give PRSI credits towards the Contributory Old Age Pension.
I received my Notice of Determination of Tax and SCROP and noticed the noticed the Home Carers Tax Credit was missing. The Net SCROP was 68000 with 43000 allocated to me, and 25000 to my wife. As I understand the PAYE system, that is as it should be.

However after updating my details using ROS to claim the Home Carers Tax Credit, the Net SCROP was 43000 with 18000 allocated to me, and 25000 to my wife.
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Sounds like a mistake. I can't think of any reason for this unless you happen to earn €18K and they have identified her as the assessable spouse or something?
 
You can only claim the Home Carer's credit OR the increased S.R.C.O.P. If you claim the home carer's credit you are only entitled to a SRCOP of €43,000 between the two of ye but you will have an extra €770 of tax credits. If your wife's earnings are more than €3,500 and you are earning more than €43,000 the increased SRCOP is the better option as her income will be taxed at 20% instead of 42%
 
M wife earms €1600 and I earn €60,000. What is the maximum SRCOP I can get. If I understand it correctly, by claiming the Home Carere Tax Credit the max SCROP we get is 43,000. How is this divided between us. Can it all be assigned to me.

Thanks
 
Clarkey said:
You can only claim the Home Carer's credit OR the increased S.R.C.O.P. If you claim the home carer's credit you are only entitled to a SRCOP of €43,000 between the two of ye but you will have an extra €770 of tax credits. If your wife's earnings are more than €3,500 and you are earning more than €43,000 the increased SRCOP is the better option as her income will be taxed at 20% instead of 42%
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I believe that the above quote is entirely wrong. In 2007 one parent may have a SRCOP of €43000 and claim the full €770 Home Carer Tax Credit if the other parents income is no more than €5080. The available tax credit is reduced by half the amount of any income over €5080, resulting in the tax credit reducing to €0 when income hits €6620.
 
michaelm said:
I believe that the above quote is entirely wrong. In 2007 one parent may have a SRCOP of €43000 and claim the full €770 Home Carer Tax Credit if the other parents income is no more than €5080. The available tax credit is reduced by half the amount of any income over €5080, resulting in the tax credit reducing to €0 when income hits €6620.
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No Clarkey is correct.
 
Ham Slicer said:
No Clarkey is correct.
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Yes, Clarkey is indeed correct, my mistake. As far as I can see, as the higher rate is 41% in 2007 the figure after which the increased SRCOP is the better option would be €3667. Open to correction on this too.
 
So I should claim the home makers tax credit of €770 and request that the full 43,000 SCROP is assigned to me. (Can I do that)

Thanks
 
Robo said:
So I should claim the home makers tax credit of €770 and request that the full 43,000 SCROP is assigned to me. (Can I do that)
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No. Clarkey was right earlier, before I confused things, re-read Clarkey's post. You can't claim both.


[EDIT] Actually, rereading leaflet IT66 on revenue.ie it seems that one can indeed claim both a SRCOP of €43K and Home Carers Tax Credit, however ones spouse would have a €0 SRCOP. Not claiming the Home Carers Tax Credit would allow a couple to claim SRCOP of €43k and €25k respectively. One would have to calculate which position was advantageous, In Robo situation it would seem that the former option would be to his advantage.
 
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Still not clear on this.

As my wife has not taxable income, should I claim the home makers tax credit of €770 and request that the full 43,000 SCROP is assigned to me. Can someone clarify that I can get full 43,000 SCROP assigned to me.
Thanks
 
See [broken link removed].
Neither is the [Home Carer's] tax credit available to married couples with combined incomes over €41,000 in the tax year 2006 and €43,000 in the tax year 2007 and who claim the increased standard rate tax band for dual income couples.
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As far as I can see you can claim the €43K married SRCOP (but no more in respect of your wife's income as part of the maximum possible €23K both spouses working increment) and claim the Home Carer's Tax Credit. Or you can claim the additional €1,600 SRCOP increment in respect of your wife's income but forego the Home Carer's Tax Credit. Seems to me that the latter may be marginally more advantageous on the assumption that the SRCOP increment is worth €1,600 @ 20% = €320 while the tax credit is presumably worth €770 @ 41% = €315.70? I could be completely wrong on this though...!
 
Thanks Clubman.

To me the key question is whether I can get the full 43, 000 SRCOP assigned to me. My wife will not have enough income to pay any tax. (She will not earn more than her PAYE tax credit of €1760.

My tax reductions on my latest pay slip were 3 times what they were the week before. I think this was because my SCROP was reduced from 43K to 18K with a SCROP of 25K assigned to my wife. I plan to ring Revenue tomorrow and see if I can get the full 48K SCROP assigned to me.
 
Robo said:
To me the key question is whether I can get the full 43, 000 SRCOP assigned to me. My wife will not have enough income to pay any tax. (She will not earn more than her PAYE tax credit of €1760.
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True - I was mixing up getting the married/both working increment to the limit of your wife's income with you getting this as an additional standard rate band which is wrong. In which case it looks like the best thing is to sort out your SRCOP and claim the Home Carer's Tax Credit.
My tax reductions on my latest pay slip were 3 times what they were the week before. I think this was because my SCROP was reduced from 43K to 18K with a SCROP of 25K assigned to my wife. I plan to ring Revenue tomorrow and see if I can get the full 48K SCROP assigned to me.
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Why not just register for the [broken link removed] online and do it through that?
 
Ringing them might get this particular issue resolved quicker. Registering for paye self service is the way to go, but for someone who has not yet registered then it (from memory) takes about 2 weeks. Hopefully, by then, the whole mess will be sorted out.
 
Thanks Gents

I am a registered ROS user. I did not see an option to assign/divide the SRCOP. Maybe I missed it?
 
Then it should be there, somewhere. A while ago I took some of my wifes credits, and I think changing the SRCOP was done in the same way. just can't remember where!
 
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