Marraige Tax

[packie]

Hi,

I'm a bit confused by the Taxation of Married persons Tax form.

I earn approx 45000 a year, while my wife lost her job before we got married so is receiving JobSeekers allowance of approx 10000 a year.

What would be the best way of dividing up the Tax Credits between us.
I think tax can be applied to JobSeekers allowance, but I am unsure how much.

And if she actually manages to find a new job, can the tax credits be reassigned mid year, or is there any point?

Thanks
Podge

 

[Nige]

Jobseeker's allowance is not taxed, but it is means tested so if you are earning, she's unlikely to be entitled to it.

Jobseeker's benefit it taxable but is almost entirely covered by the employee tax credit (which you are entitled too on this benefit). The employee tax credit is not transferrable between spouses anyway.

So, in short, you'd probably be best to take the married tax credit (ie the personal tax credit for both of you) and the maximum standard rate band (which should cover your full salary).

Adjustments can be made to this mid year if your wife's situation changes.