Online Form 11 and tax bands/rates

T

Tom189

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Hi all, I have a query that I hope somebody can help me with.

I am a PAYE worker, my wife is registered as self employed, we both have rental income from a property which is in both our names. We are joint assessed.

Say for instance I earn 50K.

My wife has a profit from self employment of say 2K

The income from rental is 5K (split between us at 2.5 K each)

The total income is appearing as 50K + 2.5K +2.5K + 2K

I paid 20% tax on 41800 of my earnings and 41% tax on 8200 through my PAYE work

So from my extra income - 2.5K from rental property I would expect to pay 41%

As for my wife, on her portion of rental income - 2.5K - should she be paying 41% on this also? or 20%?

Then on her self employment profit, should she pay 20% or 41% on that?

According to the form 11, both her self employed work and rental income is being taxed at 41%.

However, if I play around with the form 11 and put all of the rental income in her name (just to see what happens), then the rental income AND her self employed income are taxed at 20%.

can anybody explain why she this is?
 
That makes no sense.

Is it possible you were confusing which spouse was which (i.e. which income is "self" and which is "spouse") when you're doing the input..?!

Which year's Form 11 is it?
 
It doesn't make sense to me either which is why I posted! But I've tried a number of times now on the 2011 form 11 and also the same on the 2010 one.

I also tried to assign all the rental income to myself. In this case it is the same as if we shared it, all the rental income is taxed at 41% which I expected but my wife's self employed income of 2K is also taxed at 41%.

If we share the rental income, is it the case that she should pay 20% on her portion or should she pay 41%?
 
I assume that you have dependant children and that your wife qualifies for the home carers credit.
Having said that if the wifes income is less than €5080 the revenue will award the most beneficial. But I can't figure out 4500 x 21% = 945 Home carers credit 845.
Are you using the most uptodate version of Form 11?
 
Those figures I have used are not exact figures but my wife's assessable income is less than 5080 both when the rental income is split and when it is fully assigned to her.

Yes we have dependent children and claim home carers.

I am using the form 11 on ros.ie.
 
Well of her income is less than €4,024 she will get the HCC instead of the increased tax band as thats to your benefit.
 
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