Should I go back to work

colm2005

Registered User
Messages
18
Hi all. I'm hoping for some help on this one.

My wife is on a wage of €105000 a year.
I have been offered a job with pay of €34500 a year.
I am self employed at the moment but not really making any money (new bussness)
We have two children and free child care we'll 400 a month. Family member helping out when I am working.

My question is with my wife's wages so high is it much of a benefit to the house hold income me going back to work on paye or even staying self employed . Would anyone know weekly would our house income be much improved with the high tax usc etc..
I hope this makes sence.
 
Also please note. Regarding the 400 a month I will continue to pay this regardless I keep working . I Would never take that income from a family member that needs it and handy to have a baby sitter when needed so please don't count the 400 as saved money into the house.
Regards
 
My question is with my wife's wages so high is it much of a benefit to the house hold income me going back to work on paye or even staying self employed .
Yes.
Because of individualisation, you can earn 26,300 at 20% tax rate. You can also claim your PAYE tax credit which is not transferrable. The USC is calculated for you on your income. And you start building your own PRSI contributions. And you'll have income to start contributing to a pension in your own name.

That's just the financial aspects.

There is a good tax calculator on the Deloitte website http://services.deloitte.ie/tc/
 
Thank you red onion.
Very helpful.
I know its probably hard to tell as we're joint accessed and the only bic we get is 3500 in health insurance from my wife's employer. My real question is well two questions.
First what value as is how much money a week would our house hold be better off with me taking this job. Ie 400 a week.
My offer is for a job in Dublin company car no bic. Leaving the house at 5 am home at 6 pm. I'm trying to see would it be worth my while financially wise and mentally wise. Long days with little benefit to the over all house income. Worked 25 years so I should be covered with prsi.
 
There would be nearly a 40% increase in the household net income, using the calculator RedOnion linked, from 1,259p.w. to 1,748p.w.
So just under €500 a week. Plus the value of having a company car ie a substantial saving to your household by not having to run a second vehicle from your after tax income.

I don’t understand the comment about a company car with no BIK though, unless they are giving you an electric vehicle with an original market value of less than €50k. You should check that out as it is potentially a large issue.
 
Hi the car is electric and I can only use it for home to office. So not a saving on a second car.
 
As in its not much or a benefit to me as I'm the one paying for the charge and can only use it for work. I have been told I can not even use to pick up children from school
 
In one income families typically they would lose out on home carers allowance but since you don't care for dependants this isnt relevant .

Having an additional income would also provide some insurance for your family if your partner had to reduce or stop work due to ill health or other reasons.

Potentially this income could fund earlier retirement, savings for further education if not needed for day to day living costs. Additionally ,while pay is low in comparison at the moment it could lead to increases in the future.
When payments for child care won't be saved there doesn't seem to be an argument not to take the job. What does your partner think?
 
Leaving the house at 5 am home at 6 pm.
13 hours away from home for 100 euro a day? I know people do it, but it sounds like you don't have to.
But hopefully you understand the tax situation better. If going back to work, I'd look for something closer even if less money. I'm assuming your wife isn't working short hours on her salary, so it'd put extreme pressure on you both being around for your children if you're away so long during the day. And 5am starts every day??
 
So you would be working 55 hours a week for a 500 top up ? Not to mention the health issues you will get because of the hours. Spend more time on your own business in your own time instead.
 
I wouldn't do it if it wasn't a financial necessity. I'd spend the time with my family and just tip away at the business.
 
Yes.
Because of individualisation, you can earn 26,300 at 20% tax rate. You can also claim your PAYE tax credit which is not transferrable. The USC is calculated for you on your income. And you start building your own PRSI contributions. And you'll have income to start contributing to a pension in your own name.

That's just the financial aspects.

There is a good tax calculator on the Deloitte website http://services.deloitte.ie/tc/
Thank you for your answer. But would I be right in saying because of the 70k cut off point apart from my own credits and as we're joint would the extra income I bring in not be charged at the higher rate as in I know I won't be myself but more of my wife's wages will be. House hold income 135000 v 100000 as a house hold would we really be better of 500 by me working or would it be a case I bring home 500 a week put my wife pays more tax.
Colm
 
@colm2005
If you're not working, your spouse can only use 9k of your lower rate band (i.e. their lower rate band increases to 44,300 instead of 35,300 that a single person would have).
So, as a couple there's 26,300 lower rate band not being used.

The 70k cutoff that mentioned only happens when you're both earning at least 26,300
 
@colm2005
If you're not working, your spouse can only use 9k of your lower rate band (i.e. their lower rate band increases to 44,300 instead of 35,300 that a single person would have).
So, as a couple there's 26,300 lower rate band not being used.

The 70k cutoff that mentioned only happens when you're both earning at least 26,300
So would I be right in saying that 9 k extra would mean if my wage is 35000 _9 is 26000. So by going to work our house is down 26000 a year.
 
So would I be right in saying that 9 k extra would mean if my wage is 35000 _9 is 26000. So by going to work our house is down 26000 a year.
No, no. I've obviously explained it very badly!

At the moment, with just your spouse working, you're lower rate cut off is 44,300.
If you both work, it's increased to 70,600

So you can earn 26k at lower tax rate, and use your PAYE credit (which your wife can't).

In effect in your circumstances, the first 8,250k you earn is completely tax free (you use your PAYE credit).
Then the next 18,050 is at 20%. (Bringing you to 26,300)
Anything above that is at the higher rate.

So you working will always result in more income.
 
Last question I propose. I think I get what your saying. As it stand my wife gets my credit apart from the part that I have to keep. At the moment I'm self employed. If I stay self employed and at present I earn about 10 k a year. Am I better staying the way I am. As in do we get to keep the 70 k before higher tax
 
I earn about 10 k a year. Am I better staying the way I am. As in do we get to keep the 70 k before higher tax
But you don't currently have 70k.
You have 44,300 plus the amount of your income. So about 54,300
There's 16k lower rate not being used.

I'm assuming here that you've no investment or other income subject to income tax!
 
@colm2005
Here's an older thread that might explain it a bit better than my attempts.

 
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