Getting married: jointly or separately assessed: merits/demerits?

M

Mikey1977

Guest
Getting married next year and just looking into tax matters. I was looking at the Revenue website, and it said you can be jointly or separately assessed.

What are the benefits/drawbacks of each of these?

I earn around 40k per annum and my fiancee around 26 or 27.
 
There are three options for married taxation as summarised [broken link removed]: joint/aggregated, individual assessment and separate treatment (like two single people). Joint/aggregated is normally the most beneficial compared to the other two for most couples. Separate treatment could penalise the couple and I've never understood why anybody would opt for it. Note that for the year of marriage there is normally no change in tax treatment and things are settled up at the end of the tax year and only in the first full tax year following marriage does the married taxation approach opted for kick in. Hope this helps. Congratulations and good luck.
 
Thanks clubman, I figured jointly would be the way to go, but with tax issues, you never know!
 
Try [broken link removed] to (at least roughly) compare the "before" (individual treatment) and "after" (joint/aggregated) situations. The calculator does not deal with the third option (separate assessment) but this should be the same as joint/aggregated with the exception that any overpayment of tax is only dealt with at year end and not as you go.
 
ClubMan said:
Try [broken link removed] to (at least roughly) compare the "before" (individual treatment) and "after" (joint/aggregated) situations. The calculator does not deal with the third option (separate assessment) but this should be the same as joint/aggregated with the exception that any overpayment of tax is only dealt with at year end and not as you go.

Does that mean you only get repaid for the first year of marraige and not for any time after that?. Myself and Mrs D got married Feb last year and haven't got around to notifying the revenue yet. Not quite sure what they mean by saying claims must be in before March 31, surely they wouldn't refuse a repayment for last year?
 
MrD said:
Does that mean you only get repaid for the first year of marraige and not for any time after that?.

No - I meant that Revenue normally (always?) leave the married couple on individual treatment until the year end at which point they review their affairs and refund any overpayment of tax. Revenue should be notified when the marriage takes place (we did it several months later so it's not critical) and then the couple should contact them again at the end of the tax year with their P60s etc. to get them to check for overpayment. Thereafter things should be automatically sorted out if the couple opt for joint/aggregated assessment. If they opt for individual assessment then they have to do the above at the end of each year. If they opt for separate treatment then, as far as Revenue are concerned, they may as well not be married. Does that make

Myself and Mrs D got married Feb last year and haven't got around to notifying the revenue yet.

Shouldn't be a big deal. Just get onto them as soon as you can and explain the situation. Just email or write to them with your details. They will eventually need a copy of your marriage cert as proof. You can then balance your tax affairs since marriage (by submitting any relevant details including your P60s for 2004) and then opt for the appropriate married taxation approach (most likely joint/aggregated).

Not quite sure what they mean by saying claims must be in before March 31, surely they wouldn't refuse a repayment for last year?

Perhaps the March 31st reference is an out of date reference to when the tax year started in April each year? I don't think that anybody would lose out by being tardy in informing Revenue of the marriage or in getting their claims in for overpayment of tax while married but on individual treatment other than the normal 4 year (?) "statute of limitations" on backdated tax claims. But I could be wrong...

Does that make sense to you?
 
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