Mother back to work, Father retired

Hi,
I'd like to get some advice if possible plse,

my Mother has been a housewive since the late 1960's and has not worked (in paid, taxable employment) since then, my Father has retired as of 2 years ago. Recently my Mother has been offered a part time job paying 80E/week as a cheque payment. Before she accepts the questions are:

• will this affect my Fathers pension payments or tax status?
• what tax payments will my Mother be liable for?
• for tax payments and other liabilities how does she make revenue aware of her income (albeit a very small one)

the real crux of the question is that is the job worth taking on given the small sum of money paid relative to the impact it could have on my Fathers pension payments and entitlements?

tks in advance,

Hi Sid,

Welcome to AAM.

Others here can answer your question in more detail but my basic knowledge would tell me:

1. If you go to www.taxcalc.eu and input the necessary information you should be able to get a guide of their tax due if she takes up the job and may also be an indicator of how it would affect your Father's pension.

2. To register with www.revenue.ie she can call the relevant 1890 lo-call number under the Contact Details section.

Assuming your father's pension is contributory then there is no effect on his pension at that level of earnings. In fact even if was non-contributory I believe that €80/w would have minimal if any effect on it. However you can check this at www.welfare.ie where there are tables for non-contributory pension and dependent spouses.

Also she would be entitled to a PAYE employee credit of €1,830 separate to anything up to now and that covers in excess of €80/pw so there would be no tax. In fact, depending on overall income if it is under €40,000 between them if at least one of them is over 65 then there wouldn't be tax anyway as income under exemption limit. Also She's under the PRSI , INcome Levy and Health Levy thresholds too so should take home the full amount.

She can get the employer reg number from the employer. Contact the local tax office , there's a contact locator on www.revenue.ie , just put in PPS number and it gives you the phone & address of the district.

One thing, since she hasnt worked for a long time she may need to get a PPS number if she hasn't one already. Thats done through social welfare office not Revenue. She'd need proff of address and birth cert.

Assuming one of your parents is over 65, they are allowed a a joint income of €40,000 before income tax applies.
If your father is on a contributory state pension, that will not be affected by your mother working; however, if he claims for her as a qualified adult, she must not have an income greater than €310 ( this includes deposit income etc).
If your mother is an employee, the employer is responsible for deducting any tax, levy, prsi etc.

Gervan said:

If your mother is an employee, the employer is responsible for deducting any tax, levy, prsi etc.

Click to expand...

Correct, but it is the employee's responsibility to provide the employer with a proper tax credit cert or the employer will operate emergency tax which in this case is likely to be excessive. So she needs to get on top of this immediately.

All,
this is brilliant, thank you all very much for the helpful responses and links, I'm a completely new user of AAM and very much appreciate your time and effort in providing feedback,

thanks again,
Sid.