Wife made redundant. Should I claim her tax credits?

A

adox

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My wife was made redundant on Friday after 8 years service with a company and is going to sign on tomorrow and apply for job seekers benefit.

I had fully intended to ring the tax office during the week and claim the full married tax credits for myself until she finds another job. However reading up about job seekers benefit and it being taxable has me a little confused.

Will it affect my wifes job seeker benefit or even future employment earnings if I claim our full married tax credits while shes not working? We obviously want to maximise our income while only one of us is working and I was full sure that myself claiming our full married tax credit allowance was the way to go but not I`m not sure at all.
 
Tax office will probably send you a Tax Credit Certificate which will include her personal tax credits etc and they will probably deduct an estimated amount of jobseekers benefit for 2009. ( 204 x 52 = 10608 euro = tax credit of 2121 euro )

As she is not working ye will lose her paye allowance

When benefit runs out and she is still at home minding the children , ensure you claim Home Carer Tax Credit )
 
Have the married tax credits transferred to you and you can still have a PAYE credit for her also as she still has income which is taxable under PAYE (her JB)
Tax credits should read:- Personal tax credit 3660 (married) + PAYE x2 = 3660. Total =7320. reduced by (204 -13) x 52 = 9932 @ 20% = 1986.
Total Credits 7320-1986 = 5334

Hope this makes sense
 
Black Sheep said:
Have the married tax credits transferred to you and you can still have a PAYE credit for her also as she still has income which is taxable under PAYE (her JB)
Tax credits should read:- Personal tax credit 3660 (married) + PAYE x2 = 3660. Total =7320. reduced by (204 -13) x 52 = 9932 @ 20% = 1986.
Total Credits 7320-1986 = 5334

Hope this makes sense
Click to expand...


Just to throw the proverbial cat amongst the pigeons - my ex wife ( separated - not divorced ) was made redundant last week as well. We are taxed separately but I am now paying for everything while she looks for a new job. I understand I can claim tax relief on maintenance I pay for her but can I use her tax credits ?

Also - are you sure having JB allows you to use the PAYE credit ? She will have one months salary on January so that may qualify her for the benefit but am not sure if it would apply of there was no period in the year where PAYE was paid.
 
You can only share tax credits including PAYE credit if you are taxed jointly so could you change your status as you are paying all the bills. You would need your ex-wife's permission and signature to do this. As it would be to her advantage (at present) ie. you would have more money in your pocket she may agree.
 
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