New job - tax options

E

emul

Registered User
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I will be starting a new job in July. A suggestion has been made that my wife also becomes an employee (she is fulltime at home with kids) and that she could be paid up to €10k without

a) affecting our joint tax affairs
b) having to pay tax

Could this work?
What would revenue have to say?

She could probaly do general admin 1 day per month !!
 
I think she could probably earn E7,450 without any additional tax being payable as

a) She would get an increase in the standard rate cut off point for additional earnings up to E23,000
b) As an employee she would get an additional PAYE tax credit of E1,490

So E7,450 @ 20% = 1,490 minus tax credit 1,490 = Nil tax
 
I think the point is that she has to be a bona fide employee, you can't just pay her a few thousand for one day of general admin per month.
 
CCOVICH said:
I think the point is that she has to be a bona fide employee, you can't just pay her a few thousand for one day of general admin per month.
Click to expand...

Ah, I didn't pick up on that bit, 10K for a day a month does sound dodgy allright.
 
I think the point is that she has to be a bona fide employee, you can't just pay her a few thousand for one day of general admin per month.
Click to expand...
She might be very good at her job?
 
also how will you get teh money to pay her from your employer, as it makes no sense to pay her out of your after tax salary ? are you a contractor or being paid a salary ?

I think it would be difficult to prove that this was not a tax scam, and would be look at in this view by the revenue.
 
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