Give TFA to husband

[Anna Lucia]

I was always under the impression that if I were to give up working my husband would gain all my Tax Free Allowances and would then earn significantly more after tax each month. I have had a look at some tax calculators and it seems he would only come out with 310.00 more per month - anybody know if this would be correct ?

 

[ClubMan]

Depends on the gross salaries involved! Have you tried www.taxcalc.eu for the before (two spouses earning) and after (one spouse earning) situations?

 

[Graham_07]

You can't give all your tax credits to him. The PAYE employee credit ( €1,830 in 2008 ) is employment specific. You get it if you're working, it can't be transferred to him if you're not working. However if there are dependents & you earn under certain amount in a year he may qualify for the home carer credit for you. The cut-off point may also be transferred only up to a point. ( tax individualisation ) .

 

[Nige]

You can transfer your individual credit worth €1,830 (but not your PAYE credit) and his stand rate band can only increase by €9,000 p.a. These together are worth €310 each month.

However, if you are taking care of a child or dependent relative, he can also claim the home carer's credit which is €900 for this year (or worth another €75 per month).