Tax Credits

SweetP1

Hi,

I'm hoping someone will be able to help me. Two questions:

1. My employer had me on the wrong tax band for 2013 so I owe the revenue money, they're going to take it from my credits over the next few years. I have just claimed flat rate expenses that I didn't realise l was entitled to going back four years. Will they give me an actual refund or will they just deduct it from what I owe? I'm assuming the later.

2. I want to send in the IT2 form, taxation of a married couple but want to continue to be assessed separately from my husband, which is the correct box to tick, separate assessment or separate treatment? Do they back date these credits to the year of marriage?

Thanks in advance!

howardmarks

SweetP1 wrote: »

Hi,

I'm hoping someone will be able to help me. Two questions:

1. My employer had me on the wrong tax band for 2013 so I owe the revenue money, they're going to take it from my credits over the next few years. I have just claimed flat rate expenses that I didn't realise l was entitled to going back four years. Will they give me an actual refund or will they just deduct it from what I owe? I'm assuming the later.

2. I want to send in the IT2 form, taxation of a married couple but want to continue to be assessed separately from my husband, which is the correct box to tick, separate assessment or separate treatment? Do they back date these credits to the year of marriage?

Thanks in advance!

1. The review for 2013 will reduce the amount owing for that year and the adjustment for future year's reduced. Not sure about the prior years.
2. From revenue website
How do I claim Separate Assessment?
Separate Assessment can be claimed either verbally or in writing. The claim can be made by either spouse or civil partner, and must be made in the six months between the 1st of October of the preceding year and the 31st March in the year of the claim. It cannot be backdated and it lasts until withdrawn. Whichever spouse or civil partner initially makes the claim must also be the one to withdraw

SweetP1

Thanks, I read that too but to be honest I don't fully understand it! Basically, I want all the credits myself and my husband may be entitled to allocated to me but can't figure out which box to tick in order to do this!

relax carry on

SweetP1 wrote: »

Thanks, I read that too but to be honest I don't fully understand it! Basically, I want all the credits myself and my husband may be entitled to allocated to me but can't figure out which box to tick in order to do this!

If you want to take all transferable tax credits and rate band from your spouse to be used during an active tax year then you will need to opt for joint assessment.

You will get the same result financially by opting for separate assessment but you will need to request a balancing statement at the end of every tax year to have any portion of your spouses unused transferable credits and rate band put against your income for the the previous tax year.

In short joint assessment is the easiest one to opt for.

SweetP1

relax carry on wrote: »

If you want to take all transferable tax credits and rate band from your spouse to be used during an active tax year then you will need to opt for joint assessment.

You will get the same result financially by opting for separate assessment but you will need to request a balancing statement at the end of every tax year to have any portion of your spouses unused transferable credits and rate band put against your income for the the previous tax year.

In short joint assessment is the easiest one to opt for.

That's great, thank you!