Tax question ...

H

Hannah

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If were to earn around 6500 Euros gros and my husband and I earned around 18125 Euros gross from interest on savings, can anyone help me with what tax I should pay? I have put these figures into the Egrabe tax calculator and it seems to say no tax - is that right?

Also, if I were employed then does that cover my PRSI contributions? Does it cover my husband? What else does it cover?

Any help most gratefully received.

Thank you, Hannah
 
If your joint earnings are deposit interest then 20% DIRT will be deducted at source and there is no further tax liability. Entering the €18K figure into the tax calculator will not give the correct answer since it will apply income tax. If the only other earnings that you have (jointly) is €6,500 then you would be under the married income tax exemption threshold of €10,420 - see [broken link removed]. On €6,500 p.a. you would probably be on PRSI Class A0 with the benefits attaching explained here.

However if you or your husband have other earnings then these will impact the situation as I have outlined it. Does that make sense?
 
Thank you very much Clubman that has been a great help. One more question if you don't mind .... does the PRSI that I would pay cover my husband for free health cover too (indeed I assume it covers me for that), or would he have to pay extra?

Many thanks.

Hannah
 
I don't think that one spouse gains the benefits from the cover purchased by the other spouse's PRSI contributions (other than, for example, pension entitlements on the death of the latter spouse?). However would you and/or your husband not be entitled to a medical card if your income (and means?) are so low?

Just to be clear - have you posted full details of your income (earned and interest) above? I'd hate to mislead you on any of this just because only partial details were posted.

If in doubt contact your local for more detailed advice on your liabilities/entitlements.
 
Thanks again Clubman. Its all pretty hypothetical at the moment as we don't actually live there yet, but I am trying to get as much information as I can before we do! Re the income and whether I have put it all down - I am basing it on our the interest from our savings we would have after selling our house in the UK and buying in Ireland. I think someone mentioned (may have even been the Irish Revenue!) that we could keep our UK savings account which would be taxed at 20% too, same as DIRT. Do you know if we could do this, plus could we claim our UK tax allowances against this?

The figure of 6500 Euros was a guestimate on what I would like to earn in a part-time job.

I think I did read somewhere that we would be able to get possibly not a medical card, but the bit below that? Sorry to sound so vague, I haven't got the details right to hand. If you can let me have any links to this and what kind of income gets what kind of free medical help then that would be most helpful too.

Many thanks again.

Hannah
 
Hannah said:
I am basing it on our the interest from our savings we would have after selling our house in the UK and buying in Ireland. I think someone mentioned (may have even been the Irish Revenue!) that we could keep our UK savings account which would be taxed at 20% too, same as DIRT. Do you know if we could do this, plus could we claim our UK tax allowances against this?
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I was assuming that you were referring to Irish deposits/interest which are subject to 20% DIRT only (with exemptions/refunds in certain circumstances). I don't really know how UK/foreign interest is taxed. It may be subject to UK and/or Irish taxes (possibly including income tax after all) with the relevant double taxation treaty dealing with the issue of being (over)taxed twice on the same money. Maybe somebody else can comment on this issue but if not you should get independent, professional advice to apprise yourself of the tax implications.

I think I did read somewhere that we would be able to get possibly not a medical card, but the bit below that?
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Perhaps can clarify the medical card entitlements? Other useful links are the Revenue and Welfare websites. If you are in Ireland already then I would urge you to contact your local for information on your entitlemtents. Even if you are not you can probably call them.
 
Please tease out all of the issues here and/or with the Citizen's Information Centre or a private, independent, professional tax advisor/accountant before making any decisions based on possibly flawed or partial understanding of the situation.
 
Thanks Clubman I will - I expect you will see me on here a lot! I have acutally already posted another question!

Hannah
 
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