Tax code and standard rate band question

H

Herbie

Registered User
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Hi,

My wife and I earn approximately the same amount and are both PAYE workers. Her tax code is A whereas mine is N. We both have a PRSI code of A1.

My Tax Credit cert shows that her yearly standard rate band is 45,400 euro whereas mine is 27,400 euro.

First question : is my tax code correct?
Second question: what are the implications of the difference in the standard rate band?

Thanks in advance,

Herbie
 
There are no letter designated codes as such for tax although some employers use N to designate "normal" or not emergency or week 1 based. I cannot comment on the A on your wife as there is no A tax code in Ireland. The PRSI A1 is the standard PRSI code for anyone earning in excess of €500 per week.

A Couple may earn €72,800 between them in 2009 at the standard (20% rate). You may split this between you anyway provided neither may have more than €45,400. This is what you have. However if your wife is earning less than €45,400 and you are earning more than €27,400 you may benefit from a re-distribution of the standard rate cut-off point as you could be paying tax at 41% on the excess over €27,400 and she would have spare capacity at 20%.
 
Thanks for the info - it looks like we need to split the 72,800 equally to make things more even.
 
Thanks - that saves one of those revenue phonecalls that leave you in a queue for ages...
 
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