Tax credit for the new year 2015

[masterboy123]

Hi,

I just saw my tax ceritificate on PAYE website and it indicates the following:
Tax Rate Bands
Rate Band 1
42,800.00
This Rate Band is increased by:
Flat Rate Expenses
695.00
43,495.00
The amount of your income taxable at 20%
All income over
€ 43,495.00 is taxable at 40%

My question is, both myself and my wife are working, in that case isn't the annual cut off point is €65,600?

 

[vandriver]

What was 2014 tax years rate bands?

 

[rob oyle]

I just saw my tax ceritificate on PAYE website... ...both myself and my wife are working, in that case isn't the annual cut off point is €65,600?

It's not clear - if you are looking at your personal tax position and your wife is using her own credits and allowances then the cut off point for each of you should be €32,800 (in 2014), increasing by €1,000 in 2015. Combined you get the full allowances.

 

[masterboy123]

We are jointly assessed.
My annual income is around €44000 and my spouse is on minimum wage so thats around €14000 annually.
Isn't the cut off point be €65600 if we are jointly assesssed? meaning 40% tax on anything above €65600?

I cant see 2014 tax bands on PAYE Anytime. It shows latest certificate only.

 

[masterboy123]

This is the latest screenshot.
Does it look fine?

 

[rob oyle]

I think I understand the issue - where one partner is not earning sufficient to utilise all of their income tax allowances, only a certain proportion is transferable to the spouse.
In your case you will be able to claim €9,000 of your spouse's unused allowance. Only if they earn €24,800 will you jointly be able to avail of the full allowance (which is €67,600 for 2015, was €65,600 in 2014).

 

[masterboy123]

Thanks Rob,

How do I claim the unused allowance of my spouse? I have checked on online PAYE website but can't seem to find any option.

I think I understand the issue - where one partner is not earning sufficient to utilise all of their income tax allowances, only a certain proportion is transferable to the spouse.
In your case you will be able to claim €9,000 of your spouse's unused allowance. Only if they earn €24,800 will you jointly be able to avail of the full allowance (which is €67,600 for 2015, was €65,600 in 2014).

 

[rob oyle]

This is the latest screenshot.
Does it look fine?

It looks like you've already been credited with the unused portion of your spouse's credit, in that the cut-off point for you is €42,800, rather than the individual allowance of €33,800.

 

[masterboy123]

Ok,
so nothing to be done from my side.

Thanks