frankbradz
Registered User
- Messages
- 16
Thanks for your reply.Have they given her any tax credits?
If I remove the PUP payment of €6k from the Form 11, our tax bill drops to €0.Well that has dropped the bill on her income to nil, so you're into a different question / thread at this point!
Yes, we claimed Home Carer Tax Credit, as my wife is minding our own children at home at the same time as 2 other children. However, when I remove this from the Personal Tax Credits section, it makes no difference as our tax bill is still €1200Hi,
Are you claiming a Home Carer Tax Credit?
If you are, it means she's being taxed at 40%.
That makes sense.Yes, we claimed Home Carer Tax Credit, as my wife is minding our own children at home at the same time as 2 other children. However, when I remove this from the Personal Tax Credits section, it makes no difference as our tax bill is still €1200
That makes sense.
You get either:
1. the Home Carers Credit, and her income is all taxed at 40%, or
2. lose the Credit and you Tax band increase so that her income taxed at 20%.
Tax of 1200 on the PUP looks correct.
Yes, correct. You can pay via reduced tax credits from 2022. Not sure of the exact process when completing a Form 11.the liability due to PUP income to be spread over 4 years?
Thanks for the response. Yes, she is on the PUP at the moment getting €203 a week. So far she has had 5 payments. With the children going back to school in mid-March I expect she will have another 4, maybe 5 payments. That will be 9-10 payments in total. The PUP amount on the amended tax cert is saying €2111.20, so they are not that far away in their numbers. At least I now I know that when she comes off the PUP in mid-March the tax credits and tax rate bands should revert to the norm. Sets my mind at ease.Is your wife on PUP at the moment? 2020 tax bills will not be dealt with by reducing tax credits until 2022. What they have done at the moment is if a spouse is on PUP currently, the other spouse has a tax deduction to cover it. Where they are self employed, this seems to be a higher amount than you'd expect (in my experience). If you call them or contact them via myenquiries, they may reduce it. They did for a colleague of mine.
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