Tax on Seasonal/Temporary work for spouse

W

Wonderwoman

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I am currently a fulltime PAYE employee. My spouse is at home looking after our children fulltime. I have all his tax credits, if that is how you put it... He has been offered 10 days work in the run up to Christmas and I am just wondering how he will be taxed on the money he earns? I currently pay tax at the lower rate, approx €35kp.a. Does anyone know what way it will work. Should he contact revenue before he starts?
Thanks in advance...
 

He may find it hard getting a tax credit cert from Revenue this late in the year. Although a quick call to Revenue will confirm this.

Worse case scenario, is that emergency tax is applied. So if he gets paid €1,000 for his ten days work, he will pay probably €138 or 169 tax. Depends on how employer treats the payments.

Either way, the tax will be refundable in the new year as the salary should be covered by the PAYE tax credit.

Hope this helps.
 
Worst case scenario, he may have to request a P21 balancing statement and will recieve back the tax he paid in the New Year. This is worst case as he'll be seeking the refund from Revenue and not his employer and will take longer. If he can have it sorted within the year he can recieve the money through the employer (certain rules to this [second last paycheck of the year or something], but can't for the life of me remember exact details - should be under PAYE section on the Revenue web site).

He may well recieve the Certificate of Credits early enough to avoid this and recieve the money the right side of Christmas, doubtful given the late application though.

For clarity: when you say you have "all" his tax credits, some of the tax credits are non transferrable so he will still have some remaining. More than enough to ensure he won't face tax on ten days work.
 
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