Taxation of married people??

[wiggles1980]

Queation for all of you tax experts out there or anyone who has done this before.

I earn 23k and my husband earns 47k.

I want to sort out our tax credits as a married couple.

Will this mean much of a difference for us tax wise or is it worth our while?Can anyone figure out how much extra per week or month net pay it would mean for us?

Also can it be backdated to april 2012? or is it just this tax year?

Thanks

 

[mandelbrot]

It should be worth about €1,890 to you.

It has nothing to do with tax credits in your case, as you'll use up all of your own credits if you earn €23k.

The benefit is the standard rate cut off point; you are each entitled to earn €32,800 before you hit the 41% rate of income tax.

Married people can transfer up to €9k of this €32,800 between them.

So, since you only need €23k of your band, you can transfer most of the remaining €9,800 to your husband.

He will then pay tax at 20% instead of 41% on an additional €9k of his income - end result is his take home pay increases by 21% of €9k, which is €1,890.

 

[wiggles1980]

wow - thank you.

Is that E1890 net?

 

[mandelbrot]

He pays €1,890 less tax, he brings €1,890 more cash home.

 

[suzie]

Can the OP back-date this over the previous 4 years??

Thanks
S.

 

[wiggles1980]

interested to know this too?

 

[wbbs]

If they have been married for the last 4 years I don't see why not, look for review of each year.

 

[Fedupwtbs]

Wud be interested to know this also.

I earn 55k whilst the OH earns 75k annually.

Was told it wud make no difference to us as salaries are highish.

Married over 2 years so wud also like to know if this can be backdated.

 

[Joe_90]

Only applies if one spouse earns over €32,800 and the other does not.