Tax code and standard rate band question

H

Herbie

Registered User
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Hi,

My wife and I earn approximately the same amount and are both PAYE workers. Her tax code is A whereas mine is N. We both have a PRSI code of A1.

My Tax Credit cert shows that her yearly standard rate band is 45,400 euro whereas mine is 27,400 euro.

First question : is my tax code correct?
Second question: what are the implications of the difference in the standard rate band?

Thanks in advance,

Herbie
 
There are no letter designated codes as such for tax although some employers use N to designate "normal" or not emergency or week 1 based. I cannot comment on the A on your wife as there is no A tax code in Ireland. The PRSI A1 is the standard PRSI code for anyone earning in excess of €500 per week.

A Couple may earn €72,800 between them in 2009 at the standard (20% rate). You may split this between you anyway provided neither may have more than €45,400. This is what you have. However if your wife is earning less than €45,400 and you are earning more than €27,400 you may benefit from a re-distribution of the standard rate cut-off point as you could be paying tax at 41% on the excess over €27,400 and she would have spare capacity at 20%.
 
Thanks for the info - it looks like we need to split the 72,800 equally to make things more even.
 
The form you can fill inand send to tax office is called '' assessable spouse election form '' and you can download it and print from the revenue website :>

www.revenue.ie
 
Thanks - that saves one of those revenue phonecalls that leave you in a queue for ages...
 
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