Married tax credits - quick clarification

[603304529]

Hi everyone,

Sorry, this has probably been answered before, but I'm buggered if I can find it.

We are married. I earn 50k. Some of my income this year is non-PAYE, but I don't think that will matter, as I will earn more than half of my income on PAYE.

My wife this year will have earned perhaps 20k on PAYE.

I reckon we will get 3660 each, in tax credits - can you confirm this?

Now, the tricky question is for 2010. If my wife does not go back to work, and earns 0.00 for the year, does she still get 3660 tax credits, and hence, as a total, we would still have 3660 tax credits each, which I can put against my income? I get the impression that we get 3660 each, after reading the sticky at the top of this forum.

Add another twist - if she were to earn SOME money, but probably not more than 5k, and NOT PAYE, then does she get 3660 in tax credits? (and hence we can apply the full 7320 against our combined income (55k in this case)??

Thanks for your time.

 

[Graham_07]

You get 1830 each personal credit.
You get 1830 each PAYE credit available against PAYE/PEnsion/SW income only ( not self-employed)
So if you both work PAYE you both get 3660 each
If you have PAYE and self-employed income and she has PAYE you both get 3660 each
If you have PAYE and self-employed income and she has nothing you get the 3660 and you can use her 1830 personal ( not her PAYE credit )
If you have PAYE and self-employed income and she has self-employed income you get 3660 and she gets her 1830 personal credit. ( no PAYE credit as income not PAYE/Pension/SW)

 

[603304529]

Cheers. Thanks for that.

Loovely little country, isn't it - smiling down on the married, and the self employed.