Worth my while going back to work.

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sooty

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Hi i currently am a stay at home housewife. I took voluntary redundancy for a bank 4 years ago and haven't worked since.

My husband earns approx 96K pa and i am wondering is it worth my while going back to work as the tax credits will be split and he will end up paying more tax. I wouldn't intend going back full time but maybe a 2 day week if something suitable came up.

Can anyone tell me what the tax situation would be?

Thanks in advance

Sooty
 
You would qualify for the PAYE tax credit of €1,650 per annum and a standard rate band of €24,800 with no impact on your husbands tax.

So if you were to earn €12,000 for your two days then the income tax would be approx €750, no PRSI and minimal USC.
 
But would his credits not reduce by E1650 as currently he gets E3300 tax credit?
 
Great thank you - still confused about the tax credit side of things but will post in the other thread.
 
Each person has a tax credit of 1650, your husband is getting both of yours so 3300

There is also a paye credit of 1650 that each person gets if they are working so your husband is getting that at the moment and you are not and he can't have yours, it's not transferable.

So if you start working you have that 1650 for yourself and he still loses nothing.

He will only lose the additional 1650 of the 3300 if you take back your own personal allowance but you don't have to, you can leave it with him.
 
Joe_90 said:
You would qualify for the PAYE tax credit of €1,650 per annum and a standard rate band of €24,800 with no impact on your husbands tax.
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Not sure how to say "You would qualify for the PAYE Tax Cr with no impact on your husbands tax".
 
Am i not right in saying his monthly tax credit will decrease - i appreciate i will get the paye tax credit of 1650 and the personal tax credit of 1650 and that it should all balance out but his tax credit figure will surely change?
 
After reading back over these replies i think i understand - so basically i would let him take the joint personal tax credit of 3300 and i would take the paye tax credit of 1650 and his tax then wouldn't be affected. Can you do that with Revenue?
 
If you want to go back to work, then yes. The simple answer is that it is worth your while. Don't make a long term decision that is right for you just because your take home pay for the first few years will be low.

If this job has an employer's pension contribution , that's a long term benefit that it worth it.
If it will build up your experience, so your earning potential will increase in a few years, it is worth it.

Don't say that your take home pay will be low because your husband is using your tax credits . That's a convenient way of discouraging women in your circumstances from working .

If you want to work it's worth it.
 
If you want to go back to work, then yes. The simple answer is that it is worth your while. Don't make a long term decision that is right for you just because your take home pay for the first few years will be low.

If this job has an employer's pension contribution , that's a long term benefit that it worth it.
If it will build up your experience, so your earning potential will increase in a few years, it is worth it.

Don't say that your take home pay will be low because your husband is using your tax credits . That's a convenient way of discouraging women in your circumstances from working .

If you want to work it's worth it.
 
If you have dependent children then you will lose the Home Carers Credit if your income is over €9,400
 
That's a great point re Home carers credit. OP, make sure your husband is claiming this if you're entitled to it. If you haven't been claiming it, you can claim now for the last 4 years.
 
sooty said:
But would his credits not reduce by E1650 as currently he gets E3300 tax credit?
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He should be getting tax credits of €4,950, unless he is a proprietary director

Marriage credit of €3,300 + PAYE employee credit of €1,650
 
RedOnion said:
That's a great point re Home carers credit. OP, make sure your husband is claiming this if you're entitled to it. If you haven't been claiming it, you can claim now for the last 4 years.
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Its either the increased cut-off point or the carer's credit, and since the husband earns 96k they are better off with the increased cut-off point.
 
ant dee said:
Its either the increased cut-off point or the carer's credit, and since the husband earns 96k they are better off with the increased cut-off point.
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Really? I claim both(single income couple), and I've been through it with Revenue previously.
The wording re eligibility is about dual income couples.
 
ant dee said:
Its either the increased cut-off point or the carer's credit, and since the husband earns 96k they are better off with the increased cut-off point.
Click to expand...

I think its the increased cut off for the second earner that you can't claim if they are claiming the home carers credit.
 
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