personal tax credits

kdowling

My wife and I both earn 65k each.
Is there any point in us both being assessed jointly for tax purposes?
in what situation is this advantageous?

also, i am a director of a company in which I do not draw a salary, does this affect my personal tax cresits?

Any help would be greatly appreciated!

Mr.NiceGuy

kdowling wrote: »

My wife and I both earn 65k each.
Is there any point in us both being assessed jointly for tax purposes?
in what situation is this advantageous?

also, i am a director of a company in which I do not draw a salary, does this affect my personal tax cresits?

Any help would be greatly appreciated!

Without knowing your circumstances if you have the same tax credits and earn the same amount it probably wouldn't make a difference being assessed alone or together it only makes a difference when the low earner can give tax credits to the high earner. However by default you will be jointly assessed.

dearg lady

Mr.NiceGuy wrote: »

Without knowing your circumstances if you have the same tax credits and earn the same amount it probably wouldn't make a difference being assessed alone or together it only makes a difference when the low earner can give tax credits to the high earner. However by default you will be jointly assessed.

I thought that by default they would be singly assessed? How would the tax office know they are married?

SuePal

I suggest you go to an accountant, they will do a tax return for you and will always cover the cost of the fee by maximising the amount you get back, that's what i have found anyway, especially when there is a mix of PAYE /non-PAYE.

Shane732

Generally speaking in a situation where a married couple are both subject to the top rate of tax then it makes little difference as to what type of assessment you go for.

Joint assessment benefits somebody in a situation where one spouse is not utilising their full tax credits and can relieve some the their spouse.

kdowling

thanks for the replies guys.

also, i am a director of a company (second director) in which I do not draw a salary, does this affect my personal tax credits?

i heard that a company does not have to have two directors any more so i would remove myself from being a director if it meant it was affecting my credits.

Citizenpain

kdowling wrote: »

thanks for the replies guys.

also, i am a director of a company (second director) in which I do not draw a salary, does this affect my personal tax credits?

i heard that a company does not have to have two directors any more so i would remove myself from being a director if it meant it was affecting my credits.

No - it does not affect your credits as things stand.

If you were a proprietary Director of the company and it was your only source of PAYE income you would not get a paye tax credit