Tax for a couple when wife is on maternity leave.

Hi,

My wife is due to go on maternity leave in July and has just been informed that she will not receive maternity pay from her employer. So I am considering our options regarding tax.

I was thinking that it might be best for me to take all of her tax credits for this year ? I'm not too sure how this works, does it make sense ? I'm on the higher tax rate, she's on the lower.

If we were to leave things as they are, would I be right to assume that she would pay tax as normal for the first six months of the year that she is working, then receive a tax rebate next year ?

Thanks.

It is likely that you would be entitled to a tax refund at the end of the year if you leave everything as it is, the best thing would be to have your wife's tax credits allocated to you when she stops working, you can do this by simply phoning the revenue at the time and requesting the change.

if you go to www.revenue.ie and click on Contact Locator, put your PPS number in and it will give you the relevant contact details for your local tax office

That sounds good, I didn't realise you could make changes like that in the middle of the tax year.

Thanks for that.

Hi there,

I believe you may have to make your changes before March.
I tried to make the change after I went on leave in June and was not able to, I was told I had to make changes from Separate to Joint assessment by March in case that is part of your change (unless you are already jointly assessed).