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What is the best tax situation for a married couple both working and paying 41% tax?

  • 17-09-2010 10:13am
    #1
    Iona1
    Registered Users, Registered Users 2 Posts: 7 ✭


    We are getting married shortly and are currently both earning and paying tax at 41%. I have been on the revenue site trying to figure out what is the best way to be assessed next year. As far as I can see we would be best being assessed as two single people unless one of us had to take a pay cut or lost our job.

    Is assessment as single people the best option in this situation or am I missing something?


Comments

  • #2
    Ticktactoe
    Registered Users, Registered Users 2 Posts: 765 ✭✭✭Ticktactoe


    If your both in the 41% tax band then it makes no difference what way you are assessed tbh.
    If you wish to apply for tax relief but you are concerned about who (you or your spouse) recieves the refund then you are probably better off going as married but separately assessed or separate treatment.


  • #3
    Slasher
    Registered Users, Registered Users 2 Posts: 400 ✭✭Slasher


    Iona1 wrote: »
    As far as I can see we would be best being assessed as two single people unless one of us had to take a pay cut or lost our job.

    That is correct.

    The other advantage of being assessed as two single people is that when you get divorced, you don't have to make any changes.:D :D


  • #4
    Iona1
    Registered Users, Registered Users 2 Posts: 7 ✭Iona1


    Ha ha!

    Thank you both for the advice


  • #5
    blast06
    Registered Users, Registered Users 2 Posts: 228 ✭✭blast06


    You'll never be worse off being jointly assessed.
    When the pitter patter of little feet arrive in the next few years :eek: then definitely better being jointly assessed given maternity leave and all that


  • #6
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    blast06 wrote: »
    You'll never be worse off being jointly assessed.

    This is very true.

    If everything goes into one joint return then Revenue issue one assessment or balancing statement.

    If you opt for separate assessment or single assessment the scope for Revenue getting something wrong is multiplied. There is much more paper to check as well.

    Separate assessment should always produce the same liability as joint assessment - it's only how it is allocated between the spouses that varies.

    Single assessment may produce a higher liability in some circumstances. In all my years of tax filing since the various types of assessment were introduced I have only heard, anecdotally, of one case where single assessment produced lower liabilities. People of a certain vintage might remember doing income tax returns involving US dividends and grappling with the underlying tax rate that we were allowed to use in those days. It was one of those cases.


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