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Posted: Fri Jul 27, 2012 8:36 am
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I have a question, can anyone help me out as I need to make a huge decision really quickly.

If I gave my tax credits to my husband and I give up work, does he still get the credits if I am not earning?


So say if he was earning €100 a week and I was earning €50.
About 2 months ago I gave him all my credits and it turns out that I end up left with €5 a week, and the childcare costs that much so I'm thinking "shag this I'd be better off asking for a year off work to stay at home with the kids" would he still get to keep my tax credits when I am not earning? Like would his income be the exact same if I am not earning anything?

Thanks so much, any advice re tax or anything at all would be most welcome at this point.

I hope that post makes sense, my head is spinning as you can imagine :lol:


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Posted: Fri Jul 27, 2012 8:38 am
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Yes, as I understand it, if you are jointly assessed, he can use the tax credits of both spouses.

ETA http://www.revenue.ie/en/tax/it/leaflets/it2.html

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Posted: Fri Jul 27, 2012 8:46 am
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Employees get two tax credits. One personal credit of €1650, and one employee credit of €1650. You can transfer your personal credit to your husband(whether you are working or not) you can't transfer your employee credit if you are not working.
However, the band at the standard rate is extended for one spouse working and you may also get a home carers tax credit.

So in general this is how is works

2 spouses working

Each can earn 32,600 @20% tax rate and each get €3300 of tax credits to offset tax

1 spouse working
Working spouse can earn €41,800 @ 20% and gets €5760(1650+1650+1650+810) to offset tax

I hope that makes sense and I haven't gotten anything wrong...its early!


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Posted: Fri Jul 27, 2012 8:51 am
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Thanks for the link. It seems that it would work out ok, but yes it is very early. I haven't slept a wink harldy. Will someone just step in here and tell me it will be ok whatever I do? thanks :D


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Posted: Fri Jul 27, 2012 8:55 am
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Carmella wrote:
Thanks for the link. It seems that it would work out ok, but yes it is very early. I haven't slept a wink harldy. Will someone just step in here and tell me it will be ok whatever I do? thanks :D


Well I just did what you're thinking of...gave up work as childcare cost was too prohibitive and we are still standing! You will be fine I swear. If you want to PM me I could calculate out the figures for you x


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Posted: Fri Jul 27, 2012 9:38 am
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He can only use your personal credit. You cannot transfer your PAYE credit. Also if you were to stay at home he can claim the home carer tax credit of €810 a year so that would be an extra €67.50 take home a month. One thing to look out for though is this: if he is claiming an increase in the tax band for income taxable at 20%, this could be affected by you giving up work for the year.

Say he is earning €45K and you are earning €15K, he can claim an increase in the standard rate band of up to €15K (max increase you can get is €23,800 or the income of the non assessable spouse, whichever is lower) which means he would only pay tax at a rate of 20%. If you are not earning anything he doesn't have anything to increase it with and he would start paying the higher rate of tax (41%) at a much lower wage. Also you can only claim either the home carers tax credit or the increase in standard rate cut off but not both.


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Posted: Fri Jul 27, 2012 10:07 am
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Trancemadam wrote:
Also you can only claim either the home carers tax credit or the increase in standard rate cut off but not both.


Really? When I phoned the revenue they said we could do both? Shite :(


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Posted: Fri Jul 27, 2012 10:22 am
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Sorry to jump in here but my husband is just about to start a job today after been out of work for 15 months. It's only temporary to start with so would we be better been joint assessed for tax purposes or seperately assessed. I am worried I am going to get a big hit in my take home pay


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Posted: Fri Jul 27, 2012 10:36 am
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Trancemadam wrote:
He can only use your personal credit. You cannot transfer your PAYE credit.

Say he is earning €45K and you are earning €15K, he can claim an increase in the standard rate band of up to €15K (max increase you can get is €23,800 or the income of the non assessable spouse, whichever is lower) which means he would only pay tax at a rate of 20%. If you are not earning anything he doesn't have anything to increase it with and he would start paying the higher rate of tax (41%) at a much lower wage. Also you can only claim either the home carers tax credit or the increase in standard rate cut off but not both



Oh dear, that doesn't sound good. Say I am earning more than 23,800 now and go to earning nothing, that WILL affect him then. Is PAYE credit much, like are we just talking a few quid or is it big? I just wish I could hand someone over the figures and find out. I might ring the tax office altogether maybe. Can I just thank you all so much for your help, I really appreciate it, thank you. Wish me luck!


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Posted: Fri Jul 27, 2012 10:39 am
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If it is only temporary you might be better leaving it until it is more permanent. Will his wages be higher than yours. If they will and it ends up permanent you can change at that stage and transfer some of the standard rate cut off at that time and then claim back any overpayment of tax from revenue.

Miss Bumpy I have taken this from a document on the revenue website in relation to Home Carers Tax Credit. I am also in this situation and I can only claim one or the other.

"The amount of the tax credit is restricted to the amount granted for the
immediately preceding year. However, if the married couple /civil partners claim
the increased Standard Rate Cut Off Point for dual income couples/ civil partners,
the Home Carer’s Tax Credit will not be due."


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Posted: Fri Jul 27, 2012 10:45 am
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The PAYE credit is €1650 so you'll be down that
Fill in your details here http://www.hookhead.com/Tools/tax2012.j ... &credits=0

You can select whether you are married with one income or two and then compare the results.

"The amount of the tax credit is restricted to the amount granted for the
immediately preceding year. However, if the married couple /civil partners claim
the increased Standard Rate Cut Off Point for dual income couples/ civil partners,
the Home Carer’s Tax Credit will not be due."

The above states dual income couples though?


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Posted: Fri Jul 27, 2012 10:46 am
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The PAYE tax credit is €1650 or €31.73 weekly which you would still keep if you are working. The personal tax credit is the same which you can transfer to your spouse/civil partner.

This basically means that the assessable spouse gets the married tax credit of €3300 (this equals his own personal tax credit and yours added together). He also gets the PAYE credit of €1650. So his weekly tax credit would be €95.19.

If your husband earns over €43,775 (standard rate curt off of €41800 and effect of home carer tax credit of €810 on earnings taxed at 41%) and you give up work completely you will be worse off.


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Posted: Fri Jul 27, 2012 10:49 am
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A good website to help you with the figures is taxcalc.eu

Input the salaries and it will break down the new take home pay for you. I don't know if it can factor in a change of circumstance midway through the year, but it will give you monthly figures you can work from.


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Posted: Fri Jul 27, 2012 10:54 am
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Yes it does state dual income couples but there are 3 possible senarios:

1. If you are not working you will be earning nothing so your husband cannot avail of an increase in standard rate cut off.
2. If you are both working and he earns significantly more than you, he can get an increase in the standard rate cut off to a max of €23K.
3. He works full time, you work part time, he will get whichever is more beneficial based on your wages. You can earn up to a certain amount and still qualify for some or all of the home carer tax credit. If you earn €1500 the home carers tax credit is more beneficial (an extra €810 take home for your husband). If you earned €5,000 the increase in standard rate cut off is more beneficial ( this means that instead of paying €2050 tax on this portion of his salary your husband would pay €1000 so a difference of €1050 in his take home pay). Revenue will apply whichever is more beneficial.


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Posted: Fri Jul 27, 2012 10:59 am
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Trancemadam wrote:
Yes it does state dual income couples but there are 3 possible senarios:

1. If you are not working you will be earning nothing so your husband cannot avail of an increase in standard rate cut off.
2. If you are both working and he earns significantly more than you, he can get an increase in the standard rate cut off to a max of €23K.
3. He works full time, you work part time, he will get whichever is more beneficial based on your wages. You can earn up to a certain amount and still qualify for some or all of the home carer tax credit. If you earn €1500 the home carers tax credit is more beneficial (an extra €810 take home for your husband). If you earned €5,000 the increase in standard rate cut off is more beneficial ( this means that instead of paying €2050 tax on this portion of his salary your husband would pay €1000 so a difference of €1050 in his take home pay). Revenue will apply whichever is more beneficial.


Yeah I get all that, thanks. I suppose I'm just thinking specifically to our circumstances.


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Posted: Fri Jul 27, 2012 11:03 am
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If you did decide to take the year it would be beneficial for you to split it over 2 tax years. This would still give your husband a substantial increase in standard rate cut off and could mean tax back for you for year one and then when you went back to work after your year off you would pay less or no tax for the first while.


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Posted: Wed Jan 14, 2015 7:31 pm
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Hi All, Sorry for posting here.

My question to you: why after registering as married couple, tax office sent tax certificate without transfering may tax credits ( 63.47) to my husband?

We went in tax office in august 2014, after we got married, and explained them that i earn less than 10000 euros/ year, and asked them to transfer my tax credits to my husband.
In the tax certificate received in january 2015 shows that they didn`t transfered any PAYE tax credits, we have each 63.47 weekly.....but they raised his tax rate band to 42,800 which is fine. Which means they partially changed things we`ve asked.
Co-workers at the company where i work, they all have their weekly tax credits transfered to their husband.

Thanks in advance for your help.


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