Transferring Tax Credits Query

[daithid2000]

Hi,
Quick query regarding tax credits for a married couple that I can't figure out.
If I am earning 70k and my wife is earning 53k, and she takes a career break, how much extra a month would I get if we transferred her tax credits?
Also, would it be worthwhile transferring her tax credits if she were to go part time and earn half her salary.
I have tried to calculate this myself but am not sure if I am doing it properly and would appreciate some help if someone could provide it.
Thanks

 

[papervalue]

Hi,
Quick query regarding tax credits for a married couple that I can't figure out.
If I am earning 70k and my wife is earning 53k, and she takes a career break, how much extra a month would I get if we transferred her tax credits?
Also, would it be worthwhile transferring her tax credits if she were to go part time and earn half her salary.
I have tried to calculate this myself but am not sure if I am doing it properly and would appreciate some help if someone could provide it.
Thanks

You would want to clarify break up of bands and credits at present when doing comp yourself

You presently have tax band of €72,800 with two working at lower rate-
How is this broken up between you and wife now at present

is it husband 36,400 and wife 36,400
Is it husband 45,400 and wife 27,400
Is it Husband 27,400 and wife 45,400

Also how is married credit of 3660 broken up is it
is it husband 1830 and wife 1830
Is it husband 3660 and wife 0
Is it Husband 0 and wife 1830

The paye credit of 1830 is not transferable

What Happens if you only work

You could get 45,400 at 20% rest at higher rate
You can claim full married credit of 3660
You get you only paye credit 1830

What Happens if she works part time

You could get 45,400 at 20% rest of your pay at 41%
Your wife can earn 27,400 at lower and rest at higher
You can claim full married credit of 3660
You get you only paye credit 1830
She can claim her paye credit of 1830

Play around with credits/bands above to get your answer. I would only be guessing an answer as I am unaware of present breakup of bands/credits