# Tax Credits while on Maternity Leave



## legend99 (9 Jun 2005)

Hi
My wife will be going on mat. leave end August and as such her work for the year will be done at that point because her leave will carry her into the New Year. My question is, can she transfer to me the 4 unused months of credits and standard rate allowance at that point, or do we have to wait until the end of the year and have her claim tax refund, bearing in mind that she takes most of the tax credits in any case so probably hasn't paid enough tax to be able to claim it back, so I'd be needing to claim back my tax back off her credits at the end of the year in any case?

P.S. Her work does not top up her benefit so thats why I'm asking, as the beenfit is tax free.


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## ClubMan (9 Jun 2005)

If you are already on [broken link removed] and you are the assessable spouse then I assume that her going on maternity leave would have no impact on your tax situation since the credits and standard rate band allocated to her employment are not transferrable? If/when she returns to work then she will automatically benefit from her unused credits and standard rate band via payroll. 

Maybe I'm wrong...


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## legend99 (9 Jun 2005)

ClubMan said:
			
		

> If you are already on [broken link removed] and you are the assessable spouse then I assume that her going on maternity leave would have no impact on your tax situation since the credits and standard rate band allocated to her employment are not transferrable? If/when she returns to work then she will automatically benefit from her unused credits and standard rate band via payroll.
> 
> Maybe I'm wrong...



She can't benefit because she won't be working again in this tax year. And you can't move credits from year to year. Currently we have net credits of about 5700. But she has 3790 of them allocated to her, but she won't have used them all up. So I want to take back the balance of the unused credits for the last 4 months of the year.

You say we can't transfer them? But sure that means I will be paying tax while she has unused credits and these credits are given to us as a couple to share as such. Surely be to Christ that can't be right....I hope not.


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## ClubMan (9 Jun 2005)

What sort of credits make up the €3,790 allocated to your wife? What standard rate band is allocated to her? Not all tax credits, allowances and standard rate band amounts are transferrable between spouses. See [broken link removed] that I posted earlier (underlining is mine):



> Under Joint Assessment, the tax credits and standard rate cut-off point can    be allocated between spouses to suit their circumstances, for example:
> 
> 
> If only one spouse has taxable income, all tax credits and the standard      rate cut-off point will be given to him or her.
> ...



If she doesn't return to work this year then she may be due a refund of tax either before or at the end of the year in respect of unused non transferrable credits which offset tax already paid. If she is not returning to work then perhaps she can return a [broken link removed] in order to claim back tax overpaid before the year is up.


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## legend99 (10 Jun 2005)

she has obviously her PAYE allowance out of the credits she has, but she also has the vast majority of the marriage credit.
In addition, I have less than the max 38800 standard rate assigned to me as she nicked some of it. Again, I want to get that back from her now, because she can't use the full amount of her standard rate also.

The issue I have is that even if she goes with a P50 claim, the tax she has paid is less than the value of her remaining credits as she is essentially set-up to be more or less tax free. So i want to get back the portions of the the credits and standard rate cut off that can be shared btu will be unsed by her...does that now make sense?


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## ClubMan (10 Jun 2005)

If there are transferreable credits, allowances and standard rate band then there should be no problem in getting these allocated to you from when she goes on maternity leave - or possibly even in advance. Just write to Revenue and explain the situation - I'm sure that they can sort it.


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## legend99 (10 Jun 2005)

Thanks Club. I think someone in here who i work with has an Auntie in revenue so I might chance ringing her!

P.S. GO ON CORK CITY FC!!!!


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## ClubMan (10 Jun 2005)

I've always found it fine to deal with _Revenue _in general rather than people I know who work there. I also find it better to put queries officially in writing.


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