Tax & Separation

L

louthman2013

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Just wondering if a couple have one partner with a high income and a second partner with a very low or no income, assuming they are co-operating & separating amicably, is it more advantageous to be taxed separately or to be taxed together?
 
Are there children involved? This matters in relation to taxation of maintenance and the single parent tax credit.
 
Thank you for your responses and your help. Scenario is one partner with income of 120K and other partner has income of 12k, 2 young kids. My question is whether it would be better to be separately tax assessed or jointly tax assessed? Level of spousal maintenance not determined yet.
 
Sorry I'll Repose Question

Sorry, maybe if I can rephrase my question a bit better. Johnny has income of 120k, and Mary has an income of (10k+ Spousal Support of X). There are 2 children. Q. At What Level of Total Spousal Income does it become more advantageous to be seperately tax assessed as opposed to be jointly tax assessed?
 
I think you really on a salary of 120K could do with the services of an accountant. Also might be an idea to do up a proper separation agreement with a solicitor. It doesn't have to cost a lot and will set things out clearly for everybody. What's amicable today can change when people enter into new relationships etc so better to have it all clear and precise.
 
Tax & Seperation

I suppose my question is in a nutshull, at what level of income for a lower earning spouse does it become more tax efficient to be sperately tax assessed as opposed to jointly tax assessed? The spouse may be able to claim homecarers allowance, as she works predominantly in the home.
 
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