Wife not returning to work

W

Westy29

Registered User
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83
Hi

My wife is currently on maternity leave and we are assessing if its worth our while her returning to work.

I earn about 60k per annum and she earns about 26k per annum. Am I correct in saying that in the new year, if she doesnt return to work I can make use of the following??

1. An increased standard rate band up to 42800 euro (amounting to 1800 euro)
2. Her Paye tax credit of 1650euro
3. Home carers credit of 810 euro

A grand total of 4260 extra in my hand? Is there anything else im missing that we can claim??

Also we are currently separately assessed and I claim back her unused standard rate band at te end of the year. Will I also get back her unused PAYE tax credit this year?? She has been off since March.

Thanks
 
Looking at the tax calculators,it looks like you will be almost exactly 20k down on a full year.
 
The PAYE credit is not transferrable between spouses.

Next year you could claim the Home Carer credit provided your wife’s income from all sources does not exceed €5,080; otherwise it would be reduced and would be eliminated altogether if her income exceeds €6,700. However, I assume from your post that your wife will not have a taxable source of income.

Yes, the rate band for a married couple, one spouse with income is currently, €42,800.

If you are separately assessed, you can claim any credits (except her PAYE credit) or rates unused by your wife by end-of-year review.
 
Yes she would have no income.

her other tax credit is transferrable though yes? 1650?
 
You should already be claiming the increased Standard Rate Cut-Off Band...if you're not that's another €1,800 a year for you and you can go back four years.

Yes, you'd get her personal credit of €1,650 giving you €3,300 of personal credits including your own.

Her take home pay is probably circa €20k. So you'll be down €20k but up €2,460 because of your increased tax credits so a net loss of around €17,540 (around €1,462 a month). The picture is better as outlined above if you haven't been claiming the increased SRCOP.
 
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I think the poster is asking whether he can set the full €42,800 against his own income for 2016.
 
So am I correct in saying id have an extra

1650 tax credit
810 Home carers credit
1800 (extra 9000% at 20% rather than 40)

Making a total of 4260 euro per annum into my hand
 
Yes, going forward that is the position.

But now I definitely think that you haven't been claiming the extra €9,000 at 20%! What is your current "personal" Standard Rate Cut-Off Point?

If you haven't, you can go back four years and get circa €7k if your incomes have been at those €60k/€25k levels over the four year period.
 
I think you may be confusing the tax rates available to a two-income and a one-income couple.

At present, as a two-income couple, you are entitled to a 20% rate band of €42,800 plus a increase of €24,800.

Next year, you would only be entitled to a 20% rate band of €42,800.
 

I'm afraid that it's you who seems to be confused. Their incomes are currently €60k and €25k, so €42,800 of his income should already be subject to the standard 20% rate. But based on the way his posts are worded and the fact that he seems to be classifying a €42,800 SRCOP for him as a future benefit, it may be that he's only claiming an SRCOP of €33,800 at the moment (i.e. overpaying tax).

He talks about the €1,650, €810, and €1,800 as "extra" in his hand. The €1,800 shouldn't be extra because he should already be getting it. It's only "extra" if he hasn't already been getting it, in which case he can go back four years and reclaim north of seven grand assuming their incomes have been consistent over the period.
 
The poster has not yet explained how he is arriving at the €9,000 @ 20%.

I would prefer to await his reply before advising that he may be due a 4-year refund of €7,000.
 
Sophrosyne said:
The poster has not yet explained how he is arriving at the €9,000 @ 20%.

I would prefer to await his reply before advising that he may be due a 4-year refund of €7,000.
Click to expand...

You should read the relevant posts carefully instead of wading in and jumping to conclusions. I've been pretty clear about the circumstances in which such a refund could arise and pretty clear about the basis for my bringing it up. The purpose of this site is to help people, not to engage in passive aggressive points scoring. You've been exposed as not having read the posts properly - If it was me, I'd stop digging...
 
Just to clear things up. I arrived at the extra 9000 euro @20% as the difference between 33800 and 42800 euro ie I would have an extra 9k next year at 20% rather than at 40%.

We have only been married two years and we a separately assessed as a married couple, as we didn't want our individual take home pays to change. I have applied at the end of the last two years for a p21 balancing statement to make use of my wifes unused standard rate band therefore I don't think im due any rebate? Correct?



 
Ok I'm no tax expert so don't shoot me but my understanding of the the OPs post is that they are separately assessed so would be only getting the 33k srcop per year but claims back any overpayment at end of year so a big refund wouldn't have built up but he can use the full 42k next year from start of year. Also they may not be married 4 yrs, we don't know.

Oops, see you just posted to clarify, right lads, who was right and who was wrong
 
Maternity Benefit is taxable but your wife's PAYE credit should cover any PAYE on that. That may also affect your entitlement to the Home Carers Credit but probably not
 
It's not a tax point, but consider the whole income/expense situation: if your wife is home taking care of baby, you are saving on child-care and travel costs.
 
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