Earn less than wife but pay more tax

arti

Bit confused about this.

I earn 36k and last year paid 4099 in PAYE

Wife earns 42500 and last year paid 3200 in PAYE.

We have the same tax credits and are assessed as individuals but married.

What is the reason for this? Already requested a balancing statement and we both got refunds and the above figures are taking into account that.

How come I earn less but pay more tax than my wife

seamus

Impossible to say why without more information. On the face of it, it would appear that your wife has underpaid her tax, but if she has a balancing statement, then it's all above board.

Chances are she is claiming some form of tax credit which you are not. Compare your certs of tax credits from this year and you will see why she has more credits than you do.

Pension deductions are also relevant (i.e. your wife is paying into a pension and you are not) and whether or not you have children. Also if you're public service or a private employee.

arti

seamus wrote: »

Impossible to say why without more information. On the face of it, it would appear that your wife has underpaid her tax, but if she has a balancing statement, then it's all above board.

Chances are she is claiming some form of tax credit which you are not. Compare your certs of tax credits from this year and you will see why she has more credits than you do.

Pension deductions are also relevant (i.e. your wife is paying into a pension and you are not) and whether or not you have children. Also if you're public service or a private employee.

I'll have a look at her tax cert but looking at it online she has the same credits as me. Both are private sector job. No children.

Pension might have something to do with it, I pay 4% my employer pays 6% to bring it to 10% of monthly. Not sure about missus.

feel a bit miffed to be honest. I thought those who earned more paid more. Not in this case.

relax carry on

arti wrote: »

seamus wrote: »

Impossible to say why without more information. On the face of it, it would appear that your wife has underpaid her tax, but if she has a balancing statement, then it's all above board.

Chances are she is claiming some form of tax credit which you are not. Compare your certs of tax credits from this year and you will see why she has more credits than you do.

Pension deductions are also relevant (i.e. your wife is paying into a pension and you are not) and whether or not you have children. Also if you're public service or a private employee.

I'll have a look at her tax cert but looking at it online she has the same credits as me. Both are private sector job. No children.

Pension might have something to do with it, I pay 4% my employer pays 6% to bring it to 10% of monthly. Not sure about missus.

feel a bit miffed to be honest. I thought those who earned more paid more. Not in this case.

Really depends on how your credits and rate bands were applied for the year you are looking at. Have a look at your tax credit certs for that year to see if everything was split 50/50 or did one have more credits rate band than the other. Am assuming you are joint assessed for taxation purposes.

http://www.revenue.ie/en/personal/faqs/how-do-i-work-out-my-tax.html

smeharg

Are you sure you have your numbers right?

Based on the info you have given and assuming you both had full personal and PAYE tax credits only, it looks like you had taxable pay of €34,846 and gross pay of €36,298 before pension contributions.

It looks like your wife was taxed on €32,500 not €42,500. Perhaps she didn't work for the full year?

Check the actual taxable pay per your P60s or online as well as your tax credits and any other claims such as medical expenses.

arti

smeharg wrote: »

Are you sure you have your numbers right?

Based on the info you have given and assuming you both had full personal and PAYE tax credits only, it looks like you had taxable pay of €34,846 and gross pay of €36,298 before pension contributions.

It looks like your wife was taxed on €32,500 not €42,500. Perhaps she didn't work for the full year?

Check the actual taxable pay per your P60s or online as well as your tax credits and any other claims such as medical expenses.

My wife worked a full year, full time job.

I had a look at balancing statement again since that lists tax credits.

It has for me the following 2011:

Personal Tax Cr 3,300.00
PAYE Tax Credit 1,650.00
Service Charges 40.00
Medical Ins Rlf 215.20

It has for my wife:
PAYE Tax Credit 1,650.00
Medical Ins Rlf 156.40

So I have more tax credits listed against me. I don't see a personal tax credit beside her name.

My salary:
36,231
My tax:
5,018.47


Her salary:
42536
Her tax:
3,942.92

So we both get refunds for overpayment so in real terms I paid 4099 tax and she paid 3221.92.

I used to earn more than my wife then she overtook me a couple of years back. We manage our own finances and split bills but on face value it seems I'm earning less and paying more which doesn't make any sense.

daveyboy_1ie

Does your wife pay Pension contributions? Any other payments that have relief?

Also, are both figures pure wage figures or are there BIK Contributions topping these figures up? Just trying to think of mine and my wife's situations. I pay a pension, she does not and I get more credit relief.

Citizenpain

Also - check what standard band you both have ( the portion of your income taxed at 20%). it's possible that she has a higher band - If you can dig out your 2011 statement of Credits & band it willl tell you- or ring Revenue

also you have her personal tax credit - so i'm guessing it is in the bands

Is the 36231 before or after your pension deducion?

Do you know your wife's pension % ?

Joe222

arti wrote: »

My wife worked a full year, full time job.

I had a look at balancing statement again since that lists tax credits.

It has for me the following 2011:

Personal Tax Cr 3,300.00
PAYE Tax Credit 1,650.00
Service Charges 40.00
Medical Ins Rlf 215.20

It has for my wife:
PAYE Tax Credit 1,650.00
Medical Ins Rlf 156.40

So I have more tax credits listed against me. I don't see a personal tax credit beside her name.

My salary:
36,231
My tax:
5,018.47


Her salary:
42536
Her tax:
3,942.92

So we both get refunds for overpayment so in real terms I paid 4099 tax and she paid 3221.92.

I used to earn more than my wife then she overtook me a couple of years back. We manage our own finances and split bills but on face value it seems I'm earning less and paying more which doesn't make any sense.

The piece in bold stands out to me. That sum should normally be only 1650 yet you have twice this suggesting that you have your wife's Personal Tax Credit as this would equal 3300.
However, it should be you that is benefiting from it, not your wife. I get the feeling that it's your wife that has the full Personal Credits of 3300 and you have none.

smeharg

Joe222 wrote: »

arti wrote: »

My wife worked a full year, full time job.

I had a look at balancing statement again since that lists tax credits.

It has for me the following 2011:

Personal Tax Cr 3,300.00
PAYE Tax Credit 1,650.00
Service Charges 40.00
Medical Ins Rlf 215.20

It has for my wife:
PAYE Tax Credit 1,650.00
Medical Ins Rlf 156.40

So I have more tax credits listed against me. I don't see a personal tax credit beside her name.

My salary:
36,231
My tax:
5,018.47


Her salary:
42536
Her tax:
3,942.92

So we both get refunds for overpayment so in real terms I paid 4099 tax and she paid 3221.92.

I used to earn more than my wife then she overtook me a couple of years back. We manage our own finances and split bills but on face value it seems I'm earning less and paying more which doesn't make any sense.

The piece in bold stands out to me. That sum should normally be only 1650 yet you have twice this suggesting that you have your wife's Personal Tax Credit as this would equal 3300.
However, it should be you that is benefiting from it, not your wife. I get the feeling that it's your wife that has the full Personal Credits of 3300 and you have none.

It still doesn't add up.

Joe you say you both got refunds. What prompted you to apply for a refund? What are the figures per the P21 balancing statement?