Transferring tax credits to spouse

[JAM]

Hi all,
Tax is a completely alien area to me, so any help would be greatly appreciated! I am in the situation where I would like to give up work to stay at home with my son. My hubby and I are wanting to work out how much extra he would get in his wages if I transfer my tax credits to him, because with that and the money we would be saving on childcare we think the drop in income would be manageable.

He is on a basic of approx 58k, how much would he be bringing home if he had both our tax credits or is it something that is impossible to tell from just that?

Also, can a transfer of credits be done partway through a financial year - I warned you I know nothing!!!

Thanks for any help.

 

[Ham Slicer]

I will depend on if you are currently jointly assessed and all the credits etc. are split down the middle.

If so, he will have additional income of €1,630 (your personal credit)

Also an additional €9,000 of cut-off point can be transferred to him so he will have an extra €9,000 @22% = €1,980.

That's an additional €3,610 net salary he will get per annum.

Say your net annual salary is currently 20K and your childcare bill is 10K.

In summary you are down 20K, save 10K in childcare and husband net salary up 3,610. So overall you are down €6,390.

You can transfer credits mid year. Call PAYE helpline on 1890333425 (if in Dublin)