# Married Couple, one income - what allowances?



## ALEXALLI (19 Apr 2007)

Hi All, 

Im a married woman with 2 children.  up untill a few weeks ago I was working 20hours per week.  I had given my cut off allowance to my husband and also my tax credits.  I was made redundant and havent been able to find a suitable position as yet so therefore im claiming Jobseekers benefit.  Somebody mentioned that my husband will not be entitled to get my cut off allowance or my credit.  Is this correct as when I read the revenue website it states that in the case of a married couple with one income the standard cut of rate is 43K

My husband earns alot more than the €400 euro that they allow for you to be able to claim for children so therefore im not entitled to claim for children either. 

Can anybody advise me on what exactly my husband is entitled to. 

thanks


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## Joe1234 (19 Apr 2007)

Max credit = married credit 3,520, plus paye credit 1,760 (assuming he is a paye worker), plus home carers credit 770 (assuming your jobseekers benefit is taxable and under 5,080 for 2007).  Revenue do say that a person can claim either the HCC or the increase in the rate band, whichever is of most benefit.  Hope I havent left anything out.


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## ALEXALLI (19 Apr 2007)

hi

thanks for replying..what about the cut off point..how much can he earn at the standard rate?

thanks again


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## asdfg (19 Apr 2007)

Anything here


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## ALEXALLI (20 Apr 2007)

Thanks asdfg.  I had a read through that post.  It mainly deals with people who are working and what their best circumstances would be if they transferred their standard rate cut of point between spouses not really if one isnt working...thanks though it was an interesting read!


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## ALEXALLI (20 Apr 2007)

Hi 

I just rang the tax office and they told me that we are ok.  I have to keep the minimum amount of cut of in my own name and can still give the unused amount to my husband (both srcop and credit).  Same as before. 
thanks,


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## asdfg (20 Apr 2007)

> I have to keep the minimum amount of cut of in my own name and can still give the unused amount to my husband (both srcop and credit).


Not sure what revenue are trying to say?  

Assuming you are both PAYE employees, your husband is entitled to an increased SRCOP of 43K. Anything over this is taxed at 41%. All credits can be transfered to him with the execption of the PAYE tax credit. See [broken link removed] and click on tax rates and tax bands   

Should you return to work or earn additional income (Social Welfare) you can earn 8,800 before paying tax 
Gross Pay ..........8,800 
Tax @ 20% ........1,760 
tax credit ...........1,760
Tax payable ........Nil 

This is the PAYE tax credit that is not transferable. 

Your SRCOP will be 25K. 

Revenue may increase your husbands SRCOP by your income or up to a max of 68K. If this happens you pay tax at 41% on everything you earn over 8,800. You will have to let revenue know which situation you want. Either way you pay the same amount of tax. 

You state that you were made redundant. If this happened this year it way impact on the calculations as the calculations are for the whole year. 

Hope this makes sense.


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## ALEXALLI (20 Apr 2007)

thanks asdfg - 
sorry i should have said that i must keep the minimum amount of tax credit ie 1760 and transfer the rest to him (which we did a couple of years ago anyway) and his Cut off point will stay the same at 68000. We already sorted this a few years ago but because i was made redundant a friend said that my husband couldnt have any of my credits or cut of point. What im saying is that we are ok now because everything will stay as it is. He keeps my unused tax credit and cut of point. 

thanks,


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## asdfg (20 Apr 2007)

> his Cut off point will stay the same at 68000


 
As you are now effectivelly a one income family your husbands SRCOP will be reduced to 43K plus whatever your income is for this year up to a max of 68K (43K + 25K). From next year your husbands SRCOP will be 43K assuming you are not working or in receipt of any income or any budget changes.


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## Aisling2323 (20 Apr 2007)

The editor of Business Plus magazine for April drew my attention to this paper on married couples and taxation, called 'Individualisation:Time for a Critical Rethink'

it got a lot of coverage in the national newspapers a few weeks back, i saw it in the independent

you can access it free online here

[broken link removed]


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## Aisling2323 (20 Apr 2007)

married tax credit - one per couple 3520
employee tax credit - one per employee only 1760
home carers credit - one per stay at home spouse, 770


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## ClubMan (20 Apr 2007)

Aisling2323 said:


> The editor of Business Plus magazine for April drew my attention to this paper on married couples and taxation, called 'Individualisation:Time for a Critical Rethink'
> 
> it got a lot of coverage in the national newspapers a few weeks back, i saw it in the independent
> 
> ...



Yeah - you told us earlier:

Business Plus and Individualisation


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## Aisling2323 (20 Apr 2007)

i thought they deleted that post .. horray!! Also, I found an interesting article by Shane Ross on taxation of married couples, i'll look for it now ..


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## Aisling2323 (20 Apr 2007)

sorry it wasn't shane ross, it was colm rapple

http://www.catholiccommunications.ie/marriageandfamily2004/colmrapple.html


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