Newly married whats my besst opption for taxation?

kami06

Hi Just wondering if anyone can help me out..just got married, my husband earns 36k per year while I only earn 11k. Which way should we elect to be taxed aft this year, its too confusing! Would we be better off being assessed seperately or jointly, were not very well off, with having a large mortgage, loans and 2 kids etc.. so would really appreciate finding out our best option.
Thanks

Bookkeeper09

Hi there,
Go for joint assessment .There wouldnt be much need for you to transfer any of your lower rate band(amount at which you pay 20%tax) to your husband as he can earn 36400 at 20%. If his salary does go above this amount you can contact your local tax office and they can transfer some over. Would be worthwhile to transfer some/all of your personal tax credit to him as at the moment most of it is wasted as you do not have enough income i n your name to use it up.

joehandyman

Definately elect for joint assessment. In the event that your husbands income increases in the future, he could potentially use some of your unused Standard Rate Band to ensure that his income continues to be taxed at 20%. In addition, there is will be potential to transfer unused tax credits to your husband in the future, if applicable.

Also, beneficial from a CGT and CAT point of view re transfer of assets etc in the future........

alphamale 1

Defo, go for joint assessment. Check out revenue website for all other tax credits available to you (bins, trade union and doctors bills etc).

Ticktactoe

Yep i agree also with the previous posters!

censuspro

Check out year of marriage relief also.