My tax credits & SRCOP - Is it Correct?

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apple1

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Hi,
Just changed status recently from self-employed to PAYE. Notified revenue of this and of the fact that wife is a housewife. I received my "PAYE Notice of Determination of Tax Credits and SRCOP" recently and noted that my SRCOP was listed as €68,000. I'm on joint assessment but thought that my max. SRCOP was in the region of €43,000??? I'm presuming Revenue are correct but would like confirmation. Thanks, apple1
 
Hi Apple 1,
You have a SRCOP of 43K as you thought this is based on you being married and jointly assesed. The figure of 68K comes from the fact that there is an extra 25K available to your wife to earn at the lower tax bracket - however seeing as she is a housewife she will not have an income and this extra 25K of a credit is not transferable to you - it only applies to two income families.
Bluematt
 
Thanks Bluematt...........does this mean that Revenue then have made an error? Obviously my take home will now also reduce? What are the implications of not changing my SRCOP? Thanks.
 
apple1 said:
Thanks Bluematt...........does this mean that Revenue then have made an error? Obviously my take home will now also reduce? What are the implications of not changing my SRCOP? Thanks.
Click to expand...

if you look at the bottom of the form you should see the split of that €68,000 cut off. By right you should be allocated €43,000 and your wife the other €25,000. I dont think they would have given you the full €68,000. Your take home shouldn't change
 
Apple1,
Yes it seems like an error to me, my advice would be to contact your local revenue having your pps to hand, explain to them that your wife is not working and you seem to have been granted two srcop's 34Kx2. Unfortunately if you are earning over 43K gross your net income will reduce, I would advise you to contact them with the error if you dont it will be spotted down the line and you will be liable for a lump sum of tax.
Bluematt
 
Clarkey is correct if you have only been allocated 43k your take home wont change. I was under the impression you had been allocated the total 68K.
 
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