Tax credit allocation for married couple - Advice please

HouseBuyer10

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Hi all,
Just wondering what is the best tax credit allocation for my husband and I?

I earn €25,000 gross per year and my husband €49,000 gross per year. At the moment, according to our tax certs he has been allocated €3,300 personal credits (mine and his) + €1,650 employee credits; I have been allocated €1,650 (employee credits). Total €6,600.

We are jointly assessed and he is the assessable spouse.

Is this the best option?

Thank you.
 
It won't impact your overall combined take-home pay by allocating your credits in that way- you could split the credits equally if it felt fairer but the overall money netted won't change.

What is more important to do is to allocate standard rate band of €44300 to him and €25000 to yourself. This will maximise your combined net pay (as your pay doesn't require the 'normal' €35300 of standard rate band so you can transfer €9000 max to him to reduce the amount of income on which he pays 40%). If you didn't do that, you'd be potentially waiting until the end of 2019 to sort things out (I think I'm correct in my understanding that PAYE modernisation wouldn't speed up the resolution of this scenario but am open to correction).

Check my Excel spreadsheet at http://taxcalc.eu/monthlyss for more.
 
Hi all,
Just wondering what is the best tax credit allocation for my husband and I?

I earn €25,000 gross per year and my husband €49,000 gross per year. At the moment, according to our tax certs he has been allocated €3,300 personal credits (mine and his) + €1,650 employee credits; I have been allocated €1,650 (employee credits). Total €6,600.

We are jointly assessed and he is the assessable spouse.

Is this the best option?

Thank you.

What year were you married? You can go back 4 years if your earnings were at a similar level and you did not transfer a portion of your lower band to your husband.
 
Three times last year I phoned Revenue and had our tax credits manually adjusted based on our earnings. I took some of my spouse's tax credits and rate bands because I was earning the most.

However three times throughout the year we each received an automated amended Tax Credit Cert where the allocations just defaulted back to the original allocations.
Each time I had to make a phone call to have them adjusted back.

It seems that manual changes made are not being held by their computer. I would advise anyone to check these automated amendments carefully to ensure that your adjusted allocation of credits are the ones you requested.
 
Is it possible to do this online without needing to phone Revenue using on the spouse's myAccounts?
 
Related question, my wife is on unpaid maternity leave and should earn less than 35300 this year as a result. I understand I can transfer up to 9k of her PAYE band to me, plus 1650 in tax credit. In addition to using her unused 20% band, that's also an advantage in terms of cash-flow while she isn't earning, as I'll pay less tax month to month, which is helpful while she's not earning. Other than her ultimately paying more tax as a result of the change (though less tax overall combined over the year), is there any disadvantage to transferring as much of the band / credits as possible to me?
 
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