taxation of married couples

H

hotspur

Registered User
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My wife is leaving work at the end of the month to care for my small child. I already have my tax credits sent to me for this year.As she has worked for part of this year would it be in my best interests to inform the tax office of a change in tax staus or say nothing until next year?
 
If you need the money on an ongoing basis then I would change the tax credits etc straight away. Alternatively you can wait and get a nice lump sum in about 12 months time.

Depends on your own individual needs I suppose.

You can get an additional €9,000 of your salary taxed at the lower 20% rate
You can get your wife's personal tax credits transferred to you on a Month 1 basis
You may be entitled to an extra €900 home carers credit depending on your wife's salary for the YTD

All-in-all it could be worth up to €420 per month extra take-home pay this year
 
Just remember that if your wife has enough contributions to claim her 'stamps ' for 12 months , - it is a taxable benefit , and therefore she may need her tax credits to cover this .
 
The wife's PAYE credit (non-transferable) should cover any social welfare payments received.
 
allthedoyles said:
Just remember that if your wife has enough contributions to claim her 'stamps ' for 12 months , - it is a taxable benefit , and therefore she may need her tax credits to cover this .
Click to expand...
She can't claim Jobseekers, she voluntarily gave up work to mind her child.
 
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