Co-Habiting / Common Law Spouse - shared tax credits

Matt Simis

I know this has been discussed before, but just cant get a straight answer.

My understanding was that Co-Habiting Couples are not allowed to share PAYE Tax Credits. This seemed to be backed up by some stuff I saw online on the Revenue site.
However 2 of my coworkers have shared their Tax Credits with their unmarried partners. One of them went to the Revenue office and they suggested it to the couple. The other rang and arranged it.

I tried ringing my local PAYE Tax Office and was told in no uncertain terms, "no, absolutely not, I dont know what you were told".


Since mentioning this to my coworkers, one of them had no idea why they would say that as Revenue setup this up for them and the other said "duh, dont tell them you arent married, you dont have to prove it anyway".


Whats the facts?

DoMyBooks

Heres the precedent:

Can Common Law Spouses choose to be assessed as married couples?

Decision
Common Law Spouses may not elect to be assessed as married couples.

Income Tax
Section 1018, Taxes Consolidation Act, 1997
Origin: Customs and Residence
File ref:RT/87/97

If/ When the Civil Partnership Bill is made law this situation will change.

Its not something I would jump into lightly to save a few pounds in taxes, There will be ramifications if the couple separated.

Mary owns a farm with a house on it, Billy moves in, They Share tax credits, They are effectively in a civil partnership. Billy gets caught with his pants down and Mary kicks him out. Is he entitles to the half the farm and house?

Mr. Incognito

However 2 of my coworkers have shared their Tax Credits with their unmarried partners. One of them went to the Revenue office and they suggested it to the couple. The other rang and arranged it.

Frankly I don't believe you.

I've never seen Revenue do it for one reason. It is outside their powers under the tax legislation.

Not married. Single assessment only.

Matt Simis

Mr. Incognito wrote: »

Frankly I don't believe you.
I've never seen Revenue do it for one reason. It is outside their powers under the tax legislation.
Not married. Single assessment only.

Ill assume you mean Ive been mislead as opposed to Im lying, for no personal gain at all.

One guy is sitting right across from me. Lived here with his partner for 5years, has a kid etc. Went to Revenue office, they suggested and implemented it. Is there anything specifically I should ask to clarify this?

Being outside their powers under legislation... not debating that, but that doesn't actually (physically) prohibit them does it?

Mr. Incognito

I don't mean that personally that you are lying but it's not possible and Revenue certainly would not suggest it.

Without being married they cannot do it. I don't know what the story is with the guy across the way but he's not sharing credits with anyone if he is not married.

Matt Simis

Mr. Incognito wrote: »

I don't mean that personally that you are lying but it's not possible and Revenue certainly would not suggest it.

Without being married they cannot do it. I don't know what the story is with the guy across the way but he's not sharing credits with anyone if he is not married.

I asked him again and showed him your reply. He says the only thing he can think of is that they may have assumed they were married (they arent Irish if that matters). He never knew it was an issue till I was asking bout it.

Should he be worried about getting flagged as a tax evader?

Mr. Incognito

Well look it I would certainly flag it.

If he is getting the benefit of the married rate credits and bands then Revenue would be entitled to claw this back if they discover he is not married.

They may have assumed but generally they look for marriage certs.

oxplox

I have heard other people say this, too - that they are sharing tax credits with their girlfriend, etc. I can only assume these people must have children, as this seems the only other way besides marriage that two single person's taxes might be linked.
The way things are with Social Welfare and taxation are really unfair - I mean, the government is having it both ways. You're just as good as married for social welfare payments, but you're single for taxes. Something's gotta give. The way things are set up now, it is all to the advantage of the State, and the disadvantage of the individual. Maybe these politicians need to remember that it is Individuals like us who allow them to remain in office:

https://www.change.org/petitions/irish-minister-for-finance-grant-economic-equality-for-unmarried-couples

Honey-ec

Mr. Incognito wrote: »

Well look it I would certainly flag it.

If he is getting the benefit of the married rate credits and bands then Revenue would be entitled to claw this back if they discover he is not married.

They may have assumed but generally they look for marriage certs.

Not in my experience - I've been jointly assessed since my wedding and they never looked for our marriage cert., mentioned it over the phone and they changed it there and then.

relax carry on

Honey-ec wrote: »

Mr. Incognito wrote: »

Well look it I would certainly flag it.

If he is getting the benefit of the married rate credits and bands then Revenue would be entitled to claw this back if they discover he is not married.

They may have assumed but generally they look for marriage certs.

Not in my experience - I've been jointly assessed since my wedding and they never looked for our marriage cert., mentioned it over the phone and they changed it there and then.

It is not a requirement as of yet to provide proof of marriage for taxation purposes. All that is required is a written application. However proof can be requested at any stage meaning those fraudulent claimants will be discovered.

Honey-ec

relax carry on wrote: »

It is not a requirement as of yet to provide proof of marriage for taxation purposes. All that is required is a written application.

We didn't even apply in writing! I just happened to mention on the phone that was married and your woman immediately said "Oh well then you have to be jointly assessed", and lo and behold, two new tax certs arrived the following week.

It has long been my experience with the tax office that ringing three times with the same query will result in three vastly differing answers.

Jelly2

Not sure if I'm dragging this thread off point a but, but could anyone help me with this query please?
We got married in 2010, and haven't told Revenue about it. Are we required to? Also, as we commute, my Revenue address is not the one that we use at weekends (which is my partner's address). Is this likely to cause us any problems with the government?
Finally, we are obviously not sharing tax credits (both working full-time). Would it be beneficial for us to do so?
Thanks!

mari2222

it depends on the entirety of your circs (e.g. ?2 mortgages/ high earner and low earner ), whether you would be worse or better off, but since it is a fact that you are married, you should let them know.

Mr. Incognito

Also- treatment of married couples is in the stickies

http://www.boards.ie/vbulletin/showthread.php?t=2055559218