How many days those a spouse have to work, to be taxed as having two Income's?

moochy

How many days those a spouse have to work, to be taxed as having two Income's?
In order to benefit from maximum tax bands (see below)?

Married or in a Civil Partnership - one Spouse or Civil Partner with income: €41,800 @ 20%, Balance @ 41%

Married or in a Civil Partnership - both Spouses or Civil Partners with income :€41,800 @ 20% (with an increase of €23,800 max), Balance @ 41%

Geuze

Days worked is not relevant.


It's annual income that is relevant.

Geuze

Note that a non-working spouse may begin to earn income, and can earn up to 8250 tax free.

This presumes that the earning spouse has taken all the transferable tax credits.

The non-working spouse is left with their 1650 PAYE tax credit.

This means that if they do start to earn, they can earn 8,250 pa before they begin to pay tax.

cn1ll2b0

Apologies if this question deviates from OP's

Say in year 2013 if both myself and my wife have taxable income, and I enjoy the extended lower tax band i.e. 20% @ (41,800+23,800 max), Balance @ 41%.

However in year 2014 my wife lost her job thus has no income, would I still enjoy the extended lower tax band as in 2013 going forward? or would the tax band be €41,800 @ 20%, Balance @ 41% ( as in single income married couple)?

Your insight is much appreciated!

Bobby1984

cn1ll2b0 wrote: »

Apologies if this question deviates from OP's

Say in year 2013 if both myself and my wife have taxable income, and I enjoy the extended lower tax band i.e. 20% @ (41,800+23,800 max), Balance @ 41%.

However in year 2014 my wife lost her job thus has no income, would I still enjoy the extended lower tax band as in 2013 going forward? or would the tax band be €41,800 @ 20%, Balance @ 41% ( as in single income married couple)?

Your insight is much appreciated!

Unfortunately you cannot claim the increased band but your wife could possibly claim the Home Carers Tax credit if she is looking after your children.

cn1ll2b0

Bobby1984 wrote: »

Unfortunately you cannot claim the increased band but your wife could possibly claim the Home Carers Tax credit if she is looking after your children.

Thanks for your reply!

I actually thought so before posting my query... what had me confused was that you often hear people say things like "my missus used to work so I get her tax credits" as if there is a type of tax credit transferable btw spouses. However from what I understood in a single-income-married-couple scenario the personal tax credit is 3300, and the lower tax band is at 41800 euro... but this is pretty much it, there isn't a tax credit you can "get from your wife" (her PAYE credit is not transferable)

Would appreciate if anyone clarifies this for me once for all, thanks!!

relax carry on

cn1ll2b0 wrote: »

Thanks for your reply!

I actually thought so before posting my query... what had me confused was that you often hear people say things like "my missus used to work so I get her tax credits" as if there is a type of tax credit transferable btw spouses. However from what I understood in a single-income-married-couple scenario the personal tax credit is 3300, and the lower tax band is at 41800 euro... but this is pretty much it, there isn't a tax credit you can "get from your wife" (her PAYE credit is not transferable)

Would appreciate if anyone clarifies this for me once for all, thanks!!

Think of it this way.

First part, two single people. One has cut off of 32800 and the other has cut off of 32800.

Married couple on Joint assessment still have 32800 each. Now however up to 9000 of one persons cut off is transferable. So one persons goes up to 41800 while the others decreases to 23800. If one spouse has no source of income and the other spouse has taken the 9000 transferable cut off then the remaining 23800 is left unused and cannot be transferred.

Second part credits.

Two single people have a personal tax credit of 1650 and 1650 each. They also have paye tax credits of 1650 each.
Married couple on Joint assessment still have personal tax credits of 1650 each and paye credits of 1650 each. Up to 1650 of one persons personal tax credit is transferable to the other. So in the case of one spouse having a source of income and the other not, the working spouse can get personal tax credit of 1650 + personal tax credit of 1650 and paye credit of 1650. The remaining tax credit of 1650 is non transferable and cannot be used by the income earning spouse.

cn1ll2b0

relax carry on wrote: »

Think of it this way.

First part, two single people. One has cut off of 32800 and the other has cut off of 32800.

Married couple on Joint assessment still have 32800 each. Now however up to 9000 of one persons cut off is transferable. So one persons goes up to 41800 while the others decreases to 23800. If one spouse has no source of income and the other spouse has taken the 9000 transferable cut off then the remaining 23800 is left unused and cannot be transferred.

Second part credits.

Two single people have a personal tax credit of 1650 and 1650 each. They also have paye tax credits of 1650 each.
Married couple on Joint assessment still have personal tax credits of 1650 each and paye credits of 1650 each. Up to 1650 of one persons personal tax credit is transferable to the other. So in the case of one spouse having a source of income and the other not, the working spouse can get personal tax credit of 1650 + personal tax credit of 1650 and paye credit of 1650. The remaining tax credit of 1650 is non transferable and cannot be used by the income earning spouse.

Now that's as good an explanation as I could expect, thanks a mill again!
It turned out that even if one spouse in a married couple had never worked the income earning spouse would still be eligible to a personal tax credit of 3300 euro + lower tax band at 41800, just in case this is of interest for anyone...