Tax credits while on maternity leave

[triona]

Hi,
I hope someone can help me determine the best approach for tax while I'm on maternity leave.
Up to the end of May , I earned €55500 (including a €20000 bonus). My annual gross salary is €90000 (excluding bonus). I am now on maternity leave and am not being paid by my employer. My maternity benefit will be taxed from July 2013. My husband earns €33000 per year. We are jointly assessed.
Currently I have all transferable tax credits. Does it now make sense to transfer the tax credits to my husband? Do I need to do anything with the standard rate cut off point?
Thanks, Triona

 

[triona]

Just thought I'd give an update on this based on a call with Revenue. There was no advantage in me transferring any tax credits. The maternity benefit is paid each week (€265). I will be taxed on this at 41% i.e. €107 each week has to go back to Revenue. This will amount to approx €2000 which I will have to pay Revenue when I go back to work.

 

[mandelbrot]

Just thought I'd give an update on this based on a call with Revenue. There was no advantage in me transferring any tax credits. The maternity benefit is paid each week (€265). I will be taxed on this at 41% i.e. €107 each week has to go back to Revenue. This will amount to approx €2000 which I will have to pay Revenue when I go back to work.

But meanwhile, you'll have also been accumulating unused tax credits (because you didn't transfer any to hubby), so there should only be a relatively small adjustment one way or the other in your first pay period back at work.