Married BUT assessed as a single person

L

laragh

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Are there any circumstances where after a marriage it is beneficial for tax to continue to be assessed as a single person?

Both my wife and I are PAYE and earning above the cut-off of €32,000 per year. I hope to start up a small business this year on which I will be self-assessed for tax. For the first few years I can forsee this business only generating losses which I presume can be offset against my PAYE income to claim back some tax. My question is - do I need to be assessed as a single person to do this or will joint OR seperate assessment be OK?

I have looked at [broken link removed]from the revenue (and contacted them by phone) but I still am not sure. We only got married last year and I have yet to inform the revenue...
 
laragh

There are really no circumstances where it is beneficial for a married couple to be singly assessed to tax, unused credit or SCROP may not be transferred under single assessment where as they can be under separate or joint

with regard to your query regarding potential losses although yes they will be available for offset against your own other income for that year the excess if any will not be available to offset against your spouses income unless you are jointly or separately assessed to tax. Remember under single assessment you are treated for tax purposes as if you never married

another further point that may be relevant relates to rental profits/losses strictly a rental loss of a spouse may not be offset against a rental profit of the other spouse however revenue allow by concession for offset where the couple are taxed under joint assessment

take a look at page 26 onwards of the following revenue publication

[broken link removed]

goodluck with the new business
 
Many thanks bazermc,

Looks like joint assessment should be OK for me then.

Is there any particular reason (tax related or otherwise) why a married person would opt for seperate assessment?

When you say
they will be available for offset against your own other income for that year
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with regard to potential business losses, can this other income be any other income (PAYE/ rental/ share dividend)?

Am I correct in saying that to claim relief for these losses I just submit a return (Form 12?) and revenue then calculate the tax rebate?
 
hey guys, i cant find the form on the revenue website, the one to send into revenue letting them know you are married,

Does anyone know whereabouts it is?
 
Lyndan said:
hey guys, i cant find the form on the revenue website, the one to send into revenue letting them know you are married,

Does anyone know whereabouts it is?
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no form! - just write to your local tax district
 
laragh said:
Is there any particular reason (tax related or otherwise) why a married person would opt for seperate assessment?

When you say with regard to potential business losses, can this other income be any other income (PAYE/ rental/ share dividend)?

Am I correct in saying that to claim relief for these losses I just submit a return (Form 12?) and revenue then calculate the tax rebate?
Click to expand...

Separate assessment is usually used in the case of martial separation; in order to qualify for joint assessment a couple must be living together other reasons may be for privacy purposes

Regarding trading lossess. a loss incurred in a year may be offset against total income in that year only total income includes PAYE or employment income, rents dividends interest etc...., unused losses may only be carried forward for offset against income of the same trade for example a loss in 2006 unused can be brought forward into 2007 but only be used against trading profits not other income such as rent or employment income.

The Irish tax system works on self assessment that is to say you calculate your liability and complete the form 11 in accordance with tax legislation and revenue will raise an assessment based in your return and on the basis that it is correct this assessment may be a liability or a refund
Therefore if you are not familiar with the Irish tax coded allowablity of expenses etc... and event the VAT system I would recommend engaging an accountant - true it will cost however it will give you assurance that your return is correct - revenue will not accept ignorance as an excuse for an incorrect return and will impose both interest and penalties
 
ulcercentral said:
Or ring them - they'll do it there and then for you.
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Don't like ringing revenue - a letter will ensure the request is recorded
also chances are you be on hold all morning
 
Thanks again bazermc- you've answered all my questions. Your help is much appreciated.

Lyndan, the following link [broken link removed] is to the assessable spouse election form (which is mentioned in the revenue leaflet IT2). Send this to your local district office and this should do the trick.
 
when you change from single assessment to dual are you ever entitled to a refund! that would be nice!
 
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