Setting up as sole trade, joint assesement

pauld

Hi, my wife left employment during 2014, I am a PAYE worker. We have always used joint assessment for tax returns,

My wife is considering setting herself up as a sole trader in the services sector. This will be a very small undertaking, gross income of less than €25k.

For the 2015 tax year can we continue to be jointly assessed for tax purposes, given that she will be a sole trader and I will be a PAYE worker?

Gard1

yes she will be the assessable spouse for income tax purposes but joint assessment will still be available

pauld

Gard1, thanks for the reply. Forgive my ignorance, currently I have all the tax credits etc allocated, will this be impacted by her becoming the assessable person.

I guess I am trying to figure if my net PAYE monthly salary will reduce in 2015because of her change to a sole trader?

Gard1

it all depends on whether she will be making a large profit. You can still hold on to all the credits but if she makes a nice profit you will have to fork out for the tax in 1 lump sum. If she starts out in 2015 she wont have to pay any tax till October 2016 (assuming she makes a profit).

dominicbrooks

Just one small point if she has no paye income she will not get the paye credit of 1650

dominicbrooks

Just one small point if she has no paye income she will not get the paye credit of 1650