Giving up Work after Mat Leave - Tax Implications

Hi All,

Hoping that someone in the know might be able to help. I'm currently on maternity leave with my second child. I have finished my 6 months paid leave and am now taking a further 4 months unpaid plus holidays etc. which will bring me to the begining of July. I didn't receive any top-up payments from work during my maternity leave.

Thing is that I'm contemplating giving up work altogether in July to stay at home with my children. What I'd like to know is what affect this will have on us as a married couple tax wise? Is it true that my husband may have to pay more tax if I give up work? Also, would I be entitled to any tax refunds for the time I have been out of work on leave? Are there any social welfare entitlements if one chooses to give up work to look after their children.

Many thanks in advance for any replies.

you're husband will actually be able to pay less tax as he should be able to use most of your allowances

If you log onto revenue.ie and the section under income tax you'll find more details under what is called Joint assessment/aggregation. All you have to do is fill out a simple form and go from there

As you were on maternity leave at the end of 2007 and weren't paid by your employer, you should be due a tax refund for 2007.

Send a copy of yours and your husband's P60s to your tax office and ask for a balancing statement. If you had any unreimbursed medical expenses (including maternity costs) during the year, submit a Med1 too.