Marriage - partner taking tax credits

S

Sam31

Guest
Can someone try and help me with this please. At the moment my husband and I have our seperate tax credits. I am going on maternity leave in October and from Jan 08 plan to give my husband my tax credits. I spoke to the tax office and did not get too much help. Basically they said he gets €9000 of my tax credit plus my personal tax credit. Should this make much of a difference to his salary i.e does anyone think this is a good idea for me to do this. Any help would be greatly appreciated.
 
You can transfer credits between spouses on paye online now (I asssume you are already jointly assessed).
 
The other alternative is just to leave things as they are and then when (if) you return to work next year you'll have your allowance and credits spread over the remaining months and pay less tax per month. Either way it balances out.
 
If you don't transfer your credits while on maternity leave (and your employer doesn't return your over paid tax), then your overpaid tax for 2007 will have to be reclaimed after you get your P60 for the year.

As to the value of these credits (and additional lower band of tax). That depends on whether your husband earns enough to utilise them fully.
 
Trish2006 said:
The other alternative is just to leave things as they are and then when (if) you return to work next year you'll have your allowance and credits spread over the remaining months and pay less tax per month. Either way it balances out.
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While it does balance out in the long term, you get the benefit of it sooner if your husband uses the credits while you're on leave - would improve your cash flow while only one of you is working.
 
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