wife giving up work after having baby...

[shoebox]

Hi,

I got married in 2009 and my wife had our first child last month. she was is joint ownership of a new company but now wants to give that up to concentrate on family.

should I apply for marriage tax credit? if I do what can she claim?

Thanks,

S

 

[Nige]

there isn't a marriage tax credit as such, but married couples can transfer personal tax credits and some of the standard rate band between them. As your wife is not returning to work this year, it may be possible for you to ring your tax office to ensure you are getting the full personal tax credit for the two of you for the rest of the tax year. However, as a propriatory director, your wife is obliged to submit a tax return for this year, so even if you don't amend your tax credits for this year, any tax refund due will be made when the tax return is submitted.

For 2011, just advise your tax office that she isn't earning and that you wish to claim the home carer's tax credit and also that you will be taking the full personal tax credits and maximum standard rate band.

 

[CXC]

You can ring the tax office now and get her remaining tax credits for 2010 reallocated to you. Also note for next year you will be entitled to the homecarers tax credit (another €900 tax saving for you)