How is married persons paye credit assessed

H

hoopman

Registered User
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Hi Could anyone tell me how a married persons PAYE tax credit is assessed.
Example
Husband working and Wife recieving social welfare benefit of less than €4,000. Does husband get:
  1. Twice the personal PAYE tax credit ( his wifes and his)
  2. Single persons PAYE tax credit (€1,830)
  3. Single persons credit plus a percentage of the wifes
If we claimed Homecarers allowance, does this effect the personal and paye tax credits also.
I'v rang up tax office twice now and have got two partial and different answers and am afraid to ring again in case I get a third different answer and end up paying more tax than I am at present.
 
The PAYE credit is non-transferrable so the husband can, at most, get the married person's credit and his own PAYE credit.

The wife then gets her PAYE credit.

The impact of the wife's income on the homecarer credit depends on the level of her income but if she is getting less than 4k this shouldn't impact the homecarer's credit. The husband can claim this.
 
Nige said:
The PAYE credit is non-transferrable so the husband can, at most, get the married person's credit and his own PAYE credit.

The wife then gets her PAYE credit.

The impact of the wife's income on the homecarer credit depends on the level of her income but if she is getting less than 4k this shouldn't impact the homecarer's credit. The husband can claim this.
Click to expand...

Thanks for the reply Nige,

Would I be right in saying so, that the wifes PAYE credit would only be equal to 20% of her income ie. €4,000 X 20% = €800 and not the max €1,830.
The reason I was wondering about the home carers is that if we apply for it, then our joint income would be €54 above the married couples SCOP which would then mean that i would have to pay 41% tax on the €54.
If that was the case would that mean that when i submit my medical expenses for 2008,(approx €2,000) Would i get back 41% on all of the €2,000 expenses or do they take that as a deduction of my Income and then tax it. For Example
Joint Income €44,454
less deductions €2,000
taxable income €42,454 X 20% = €8,490.80 less tax credits.
 
Hoopman - you are correct.
Your wife will on get 20% of her PAYE allowance , if she earns less than the amount of 9150 euro ( 1830 x 5 )

Look , the best thing you can do at this stage of tax year , is to wait and claim Home carer etc. in January.( 2008 returns )

If you are jointly assessed AND your wifes Benefit is taxable , you will not pay tax at 41 % unless your earnings are in excess of 70,000 euro
 
allthedoyles said:
If you are jointly assessed AND your wifes Benefit is taxable , you will not pay tax at 41 % unless your earnings are in excess of 70,000 euro
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Not correct. The maximum cut off point that one of a married couple can have is a 44 -45k. Anything over that is taxable at 41%.
 
Joe1234 said:
Not correct. The maximum cut off point that one of a married couple can have is a 44 -45k. Anything over that is taxable at 41%.
Click to expand...
My understanding from reading the info on my current tax credit certificate without the home carers is
  • my scop is €44,400 plus the total of my wifes income ie €4,000 total scop is then €48,400
  • Then under that they have reductions to scop DFSA €4,000
  • Resulting in scop being back to €44,400
So what i'm thinking will happen if I apply for the homecarers is that my scop will be €44,440 less the DFSA payment of €4,000

Does that make sense anyone, Am I on the right track.
 
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