Joint assessment of net salary confusion

E

Eireog007

Registered User
Messages
160
Hey guys

Having a bit of a tough time with the online calculators working out the net monthly income for my wife and myself. The calculators either don’t allow me to input a joint calculation taking both our pension payments into account or seem to give different final figures when doing a single assessment.

Basically our situation is as follows

Me: €50,000 gross
Wife: €40,000 gross
Both private sector workers in our 30’s. No other incomes or bik etc.

We are intent on maxing our our pension contributions now that we have our house deposit lump sum accumulated. The numbers I get from the various calculators seem to vary between €4,700 - €5,100 net combined after pension contributions and I was hoping somebody here could shed some light on what the actual figure should be.
 
Eireog007 said:
Why only up to what she is getting the higher rate as opposed to maxing our the 20%?
Click to expand...
Use the full 20%

You can swap a part of her band to you to maximize the total you're paying at lower rate.
40k less 20% pension leaves 3,300 unused at lower rate, so just apply to Revenue to switch that much to you.
If you don't, you just apply for a balancing statement at end if year and you'll get it back then.
 
RedOnion said:
Use the full 20%

You can swap a part of her band to you to maximize the total you're paying at lower rate.
40k less 20% pension leaves 3,300 unused at lower rate, so just apply to Revenue to switch that much to you.
If you don't, you just apply for a balancing statement at end if year and you'll get it back then.
Click to expand...

Ok to make sure I understand this properly if we apply at the end of the tax year as a joint assessment we would get back the difference then but there is a way of increasing my allowance to €13,300 straight into my pension pot through my payroll as normal and not have to worry about collecting the money at the end of the year?
 
@Eireog007
You each have a standard band of 35,300

If your wife earns 40k, and puts 20% into pension, she's only got taxable income of 32,000

Whereas you, with 50k, less 20% will have 40k. So you'll pay higher rate on 4,700

Instead, as revenue to adjust your bands (you can do it online). Her 32k, you 38,600

Revenue will issue new tax certs, and it'll be auto reflected in your payroll.

That's assuming you're making the 20% payment to pension monthly through payroll.
 
RedOnion said:
@Eireog007
You each have a standard band of 35,300

If your wife earns 40k, and puts 20% into pension, she's only got taxable income of 32,000

Whereas you, with 50k, less 20% will have 40k. So you'll pay higher rate on 4,700

Instead, as revenue to adjust your bands (you can do it online). Her 32k, you 38,600

Revenue will issue new tax certs, and it'll be auto reflected in your payroll.

That's assuming you're making the 20% payment to pension monthly through payroll.
Click to expand...

Thanks onion that’s what I thought you meant just wanted to check.

We aren't currently paying anything into pension as we were focussed on the house deposit rightly or wrongly but that’s the plan now in the next couple of weeks.

Your plan also has an added bonus of us pretty much having identical incomes after tax which will make household budgeting easier.
 
You're obviously not married long enough to realise the money is all hers either way! ;)

Don't forget you can make a one-off avc contribution before October in respect of last year, and get tax relief. Might be an idea to kick start the pensions.
 
Haha I meant more for my own self delusion

We were married in May of last year and only started working in Ireland again in March after moving back from abroad will that effect the amount we can put in?

Also could you explain a bit further about this one off payment? Can this be done pre tax as well or from our savings?
 
Here's what I'm calculating assuming you pay 20% and your spouse pays the €4700 as suggested above:

O4xUHst.png
 
Ah, if you didn't pay income tax in Ireland last year, you can't get relief for last year. But it's a handy feature. I've just made a extra contribution for last year, as cash flow didn't allow me make max monthly.
So even if it takes you a while to get set up this year, you can still make the max contribution for the year anytime until Oct next year.
 
RedOnion said:
Ah, if you didn't pay income tax in Ireland last year, you can't get relief for last year. But it's a handy feature. I've just made a extra contribution for last year, as cash flow didn't allow me make max monthly.
So even if it takes you a while to get set up this year, you can still make the max contribution for the year anytime until Oct next year.
Click to expand...

No we would have paid tax last year just from March/April onwards
 
Ah, then you can.

You make the gross payment to your pension fund, and they'll issue a receipt. You can then immediately submit details to revenue, and get the tax refunded.

My pension administrator offers to calculate the maximum from P60 details.

It's a quick way to get the pension started.
 
RedOnion said:
Ah, then you can.

You make the gross payment to your pension fund, and they'll issue a receipt. You can then immediately submit details to revenue, and get the tax refunded.

My pension administrator offers to calculate the maximum from P60 details.

It's a quick way to get the pension started.
Click to expand...

Thanks that might just be a way to go, we are planning on starting a family in the next year as well so it will be balanced against saving that money to cover any maternity leave requirements.

Plus our 7 years in Australia means we have a decent starting point of a pension down there which we can’t touch for 30 odd years anyway.
 
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