tax as married couple

[guerngirl]

My husband earns EUR 100,000 and I earn EUR 65,000. Are we better off if we share all of our tax credits equally or if we weight it so that my husband gets all tax credits that I am permitted to transfer over into his name?

also, there is a couple earning a combined income of EUR 80,000 who are not married and are taxed separately. If they get married and opt for joint taxation, are they better off than when they were taxed prior to being married? And better off again if they weight it so that the higher earner gets as many of the tax credits as are possible to transfer between husband and wife?

 

[BarMcc]

If both spouse's pay tax at 41% (which you do) there will be no income tax saving from joint assessment.

The benefit of joint assessment is where one spouse has low income. That spouse can transfer some unused tax credits and band to the other spouse.

 

[guerngirl]

hi, thanks, that clears things up. also if one person pays only the lower rate of tax, and the other pays the 41% is the lower income earner better off transferring their credits to the higher earner (married, joint assessment)?

 

[huskerdu]

hi, thanks, that clears things up. also if one person pays only the lower rate of tax, and the other pays the 41% is the lower income earner better off transferring their credits to the higher earner (married, joint assessment)?

Yes, you are correct.