PAYE Tax Credit

D

dewdrop

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I am married and get a Paye tax credit of 1650 euro. in addition to the old age contrib. pension i also get 206 euro weekly in respect of my wife as a qualified adult allowance. Both these sums are lodged directly into our joint bank account. It has been suggested to me that if the qualified adult allowance was paid directly to my wife then she could get PAYE tax credit in her own right which would lesson our tax bill. Is this correct and if so how do i proceed?
 
From your post , it would appear that your wife is not a PAYE employee nor in receipt of a PAYE related pension in her own right. The OAP she receives does not entitle her to a PAYE tax credit unfortunately.
 
Thanks 44 Brendan. Even if the qualified adult allowance was paid into an account in her name would this alter matters. I have in mind that i saw somewhere on revenue website that income subject to paye included such things as social welfare payments
 
SW income would entitle your wife the the PAYE tax credit. Call SW and see can they pay the pension directly to your wife. Problem sorted.
 
Ham Slicer said:
SW income would entitle your wife the the PAYE tax credit. Call SW and see can they pay the pension directly to your wife. Problem sorted.
Click to expand...

Surely it depends on the type of SW income?

Even if the pension is paid directly to OP's wife, isn't it still his money, an increase in his contributory pension for a qualifying dependent... :confused:
 
Thanks Mandeltrot and other posters. I appreciate the qualified adult allowance is payable as a result of the Contributory Old age pension. However i note that since Oct 2002 new applicants have a choice of having the Qualified Adult Allowance portion paid directly to their spouses. Would this in some way entitle her to the PAYE tax credit. Clutching at straws?
 
Have had discussions with revenue on this subject and they quite clearly state that the QA payment regardless of who it is paid to does not qualify for PAYE tax credit as it is husband's (income) pension based on husband's PRSI contributions
 
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