Tax planning to improve cash-flow

nest egg

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All being well, my wife will take 4 to 5 months' unpaid maternity leave, starting Jan 1st next year. Obviously how to best manage our finances during this period is an important topic. One of the areas we're considering is efficient tax planning. As my wife won't be earning, could I be treated as married/one income and/or benefit from her tax credits? We've never been jointly assessed before as there was no benefit in doing so, and therefore this is new territory. Fully understand that the total amount of tax due won't change for both us next year, but the question is whether we can be smart about when it is paid, to maximise our cash-flow position, while she's out of the office.
 
The answer to this will depend on what your wife will earn for the 7-8 months of the year where she will be working. If the answer falls below €35,300 then there will be room for tax savings. What I tend to do if cash flow allows is apply for a P21 at the end of the year and any overpayment will be refunded.

If you give the salary breakdown for you and your wife I can provide a more detailed answer.
 
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Thanks for your response. She earns 50k gross, so it's highly likely we'll have an overall tax benefit with pooling our allowances, providing she takes at least 4 months off. Obviously the longer she's on maternity leave, the greater that benefit would be.

My question though is more about cash-flow while I'm the sole earner / on one income. Basically I'd like to maximise the tax relief available (eg the higher threshold before the 40% applies and / or assume her PAYE credits). I fully appreciate that it won't change the overall tax due for 2020, but would certainly help with cash-flow while on one income from start of Jan until the start of May or June.

Is it possible?
 
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@mojoask
There are no disadvantages to joint assessment, so you should do that bit.
There are cash flow benefits to do what you are saying, but it's not going to be huge.
 
Definitely will be doing joint assessment for the 2020 tax year RedOnion. May opt for it this year as there's no disadvantage, although neither of us will benefit at current earnings / limits.
 
I think you have to opt for joint assessment by April this year to use it next year. Its a while since I looked at it, so could be completely wrong.
 
Just had a quick look on Revenue's site, they need to be informed by 31 March in the year of assessment. So if doing it this year, we'll have to get our skates on.
 
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