Case study Tax credits with 2 jobs

masterboy123

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166
Hello everyone,

We are a married couple with a newborn baby :)
My wife is currently on maternity leave and getting weekly maternity benefit (she used to work full time). Her employer doesn't cover her maternity leave.

In order to boost our take home income, I have decided to work part time in addition to my 40-hours a week job.

This part time job is carried over weekends and few evenings on weekdays (as needed basis). I have received my first pay from this part time job and noticed €0.00 as my Tax Credits. It says Class A1/weeks 2.
Overall, I have received only 44% of the Gross Pay from this new part time job.

What would be the best way to change the taxes in order to get the maximum take home money for our family?

Thank you all.
 

masterboy123

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166
@RedOnion

Annual salary for my 40-hours a week is €65,000.

Annual salary for my part time job is €230,000. Will be doing approximately 10-16 hours a month from this part time job (as required and some months zero hours).

Thank you.

What's the salary for each job?
 
Last edited:

RedOnion

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4,540
I'd be going full time with that part-time job! :)
Assume that's a typo.

So, you're a higher rate tax pay just with the full-time job, so there's not much scope to reduce tax.
However, with your wife not working, you should get some tax back after end of year.
 

irbx

Frequent Poster
Messages
49
For tax reasons could you not convince you wife to work part-time or Is their any other ways she can have income from Divents or Rent. Doing so will increase you higher tax bans before ye hit 42% tax band. As below you wife can earn up to 26,300 at 20% depending on salary it could save ye up to 5200 in tax if earning the full amount.

From Revenue site below

"In 2020 the standard (20%) rate band for couples in a marriage or civil partnership is €44,300. If both people are working it is increased by the lower amount of either:

  • €26,300
  • or
  • the income of the lower earner.
This means that the maximum standard rate band a couple can have is €70,600 (€44,300 + €26,300). It is not possible for one person to use the full amount of €70,600. An individual can have no more than €44,300 unless they have additional reliefs such as Personal Retirement Savings Account or Flat Rate Expenses. "
 

masterboy123

Frequent Poster
Messages
166
I wish I could do the part time job as my full time job :) but it's not a typo.

So given my wife is on maternity leave it has reduced our tax credits, the revenue are aware of it and they have amended the tax certificate.
The new tax certificate says, All income over € 58,xxx.00 is taxable at 40%

Will it still be able possible to get tax back at the end of year?

I'd be going full time with that part-time job! :)
Assume that's a typo.

So, you're a higher rate tax pay just with the full-time job, so there's not much scope to reduce tax.
However, with your wife not working, you should get some tax back after end of year.
 

masterboy123

Frequent Poster
Messages
166
The Maternity benefit has reduced Tax band by 12,740.00. So All income over € 58,xxx.00 is taxable at 40%

We live in a rented accommodation so I am not sure how could my wife show that she's working or getting income from rent?

For tax reasons could you not convince you wife to work part-time or Is their any other ways she can have income from Divents or Rent. Doing so will increase you higher tax bans before ye hit 42% tax band. As below you wife can earn up to 26,300 at 20% depending on salary it could save ye up to 5200 in tax if earning the full amount.

From Revenue site below

"In 2020 the standard (20%) rate band for couples in a marriage or civil partnership is €44,300. If both people are working it is increased by the lower amount of either:

  • €26,300
  • or
  • the income of the lower earner.
This means that the maximum standard rate band a couple can have is €70,600 (€44,300 + €26,300). It is not possible for one person to use the full amount of €70,600. An individual can have no more than €44,300 unless they have additional reliefs such as Personal Retirement Savings Account or Flat Rate Expenses. "
 

masterboy123

Frequent Poster
Messages
166
I have been going through my Revenue account and noticed the option of sharing Personal tax credit. Would that make any difference given my wife is looking after our newborn baby?

Thank you
 
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