My wife is returning to paid employment - approx how much is required to have overall greater net household income?

M

munstershug

Registered User
Messages
14
A bit of a how long is a piece of string question I know folks!
But lets assume the following.... both PAYE, no significant tax saving opportunities outside standard tax credits... 3 kids, 17,15 and 8. I am on over 90k . My Wife is offered part-time salaried role (3 days per week) ....
Given the tax credits and benefits implications is there even an approximate of what her income needs to be to get neutral on net income before and after???
 
munstershug said:
Given the tax credits and benefits implications is there even an approximate of what her income needs to be to get neutral on net income before and after???
Click to expand...
Play around with the figures in a tax calculator to figure it out? E.g.:


munstershug said:
no significant tax saving opportunities outside standard tax credits...
Click to expand...
Pension?
Clear your debts/mortgage if applicable?
munstershug said:
what her income needs to be to get neutral on net income before and after???
Click to expand...
What does this mean?
 
Anything she earns, after tax and national insurance, will increase the household income

Against that you have to set any extra costs
 
jpd said:
Anything she earns, after tax and national insurance, will increase the household income

Against that you have to set any extra costs
Click to expand...

And OP needs to factor in that if the wife earns more than 10.8k he will lose the home carer credit of €1,800. If the wife earns between €7.2k an d €10.8k then it will be partially lost.
 
With the age of the eldest, also take into account once the household incomes exceeds 100K you will lose 500 euro SUSI Grant.
 
€1, no?

I don’t really understand the question.

Every extra Euro is ‘profit’.
 
It’s great that your wife has taken up paid employment. It will allow her to build up her personal pension, savings, and allow her to grow her career and still contribute to the family finances. The monetary differences you see in your take home pay is just a reflection of the advantages to your family during the time your wife did not work outside the home.

There may be more opportunities for you both to balance your work/life balance going forward with both of you working. You should consider parental and other leave options as being more available to you now that your wife is working.

Best of luck
 
Anyone want to start a Key Post on this interesting topic?

Is it worth my wife going back to work on a part-time basis?

It does not have to be perfect. Just a good draft and others will add stuff to it.
 
I assume you mean net take home v costs such as commuting and childcare?

So work out take home and compare to additional costs that will arise.

And work out of you need that extra and if she needs to work for other reasons etc.

Some people feel that unless it’s a few hundred a week gained it’s not worth it but others feel every €1 helps.

And there’s other aspects such as mentioned above like pensions
 
I suggest renaming that key post
Financial impact of a spouse taking a job, compared to a one income family

If she wants to work and have a job and start to build or rebuild her career, that is reason enough.

However, it is a good idea to be able to plan the full financial impact on the family income.
 
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