Tax Bands Loophole

[Thanos0]

quick question.

Two people married have joint tax credits of approx 67800 and if one works it's approx 43800 before hitting the 40% rate.

Am I correct in saying that if both works at the start of a year and One gives up working one week into the year, that the tax band is retained for the remainder of the year.

 

[vandriver]

No.
The tax band is raised by the amount of the second wage up to 24k

 

[Thanos0]

Not sure you read my original post correctly

 

[Joe_90]

The increased standard rate band of €43,800 is available to one spouse irrespective of whether the other spouse works or not.

The balance can only be used to the extent that the other spouse has income.

So it's €43,800 plus the second spouses income.

 

[vandriver]

Not sure you read my original post correctly

I am

 

[Thanos0]

Ok so what you are saying is that over time you band is raised from 44k ish to 68k ish

 

[torblednam]

Ok so what you are saying is that over time you band is raised from 44k ish to 68k ish

No that's not what anyone is saying.

It's actually very simple.

A married couple (jointly assessed) have 2 x the individual std rate band.

They can choose to allocate up to 9k of that std rate band between the spouses as it suits them.