Tagging extra earnings on to husband's income

E

eiko

Registered User
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23
Hi,

I have a prospect of earning about 1,500 euros over the next 10 weeks or so. I am not working at the moment and as such, we are jointly assessed on my husband's income. He is a PAYE worker. On speaking with revenue, they said that it is possible, up to a limit of 3,175 p.a., to tag my earnings on to my husbands income and declare it on receipt of his P60 at the start of the year. What the woman on the phone couldn't tell me was whether my 1,500 would be taxed at 41% (I assume so) as this is the tax bracket that my husband falls into. If anybody can give me a clear answer in this regard, I'd appreciate it. Thanks!

E
 
Just to be clear you aren't tagging it onto your husband's income - joint assessment just means that your separate incomes are aggregated. So when you return this income, you will disclose it as your income (on a Form 12), additional to his P60 income.

As you have no other income, it will be taxable at 20%. If the income was returned as your husband's then he would be taxed at 41%.
 
mandelbrot said:
Just to be clear you aren't tagging it onto your husband's income - joint assessment just means that your separate incomes are aggregated. So when you return this income, you will disclose it as your income (on a Form 12), additional to his P60 income.

As you have no other income, it will be taxable at 20%. If the income was returned as your husband's then he would be taxed at 41%.
Click to expand...

Indeed.

If the temporary earnings relate to an employment, the OP should be entitled to claim the employee tax credit so no income tax may be payable on the earnings.
 
Yes, I would be employed by an educational institution. So that probably would be the case.

Thank you.
 
If your husband is getting home carer's credit for you then you would be better off continuing to claim this and paying at 41% on your earnings.

In practice, Revenue will grant whichever is most beneficial when processing the return.
 
I'm a bit confused by the last post. Can't the home carer earn €5080 in the tax year before the home carer's tax credit is impacted?

Thanks

E
 
Yes, but you can't have both the home carers credit AND the increased standard rate band - as Mrs Vimes says, when being assessed both ways will be looked at it (home carers credit & no increased std rate band vs no home carers credit & increased std rate band) and whichever is most beneficial will apply.
 
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