Tax Credits now that my wife is earning more than before

G

guido

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Hi

I am looking for some advice regarding Tax Credits to maximize take home pay.
My wife recently went back to work part time and was earning 6K per annum
She will now be doing some more hours and that will increase to approx. 11k per annum (approximate as she will be off during the children's school holidays)
I currently have her tax credits too and now think, should I transfer these back to my wife?
My gross pay is 80K per annum
Also I believe that we will lose the Homecarer's allowance now - Is that correct?
Any advise much appreciated to maximize our take home pay - Thanks!
 
Her PAYE tax credit (€1650) is non transferable to you,so €8,250 of her wages are tax free.
Will you lose the homecarers tax credit -yes!
 
Thanks Vandriver...so as it stands is that the impact then....we lose the homecarers allowance but I don't need to take any action on the way the credits work - I thought I had my wifes credits but you are saying that she can earn 8250 tax free - Have I got that right? thanks for your help - It's not my forte! Cheers
 
you can take the increased standard allowance for dual income couples or the home carers credit. not both.

I did the sums last year and reckoned the tipping point was about 4K per annum above which your better off taking the increased allowance, but that's based on my Mrs. being self-employed and not getting a PAYE allowance. For PAYE its probably a bit higher.
 
thanks shweeney - good to know....so if am I losing the Home Carers allowance anyway since my wife will be earning over 6.7K per annum (I think!) I should take the increased standard allowance then? Correct? thanks!
 
We were in a similar situation recently. Just phone your local tax office (click on your region http://www.revenue.ie/en/contact/index.html ) , they are really helpful and will advise, update or change your credit allowances to you and your wife's best advantage. Ours were sorted in a few minutes and new tax credit certificates issued.
 
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