Just married - any tax benefits

mickman

Hi everyone

I'm recently married and we both work full time

I was wondering if there any immediate tax benefits to telling revenue we are married or does the benefits only kick in if one of us isn't working

Sociopath2

mickman wrote: »

Hi everyone

I'm recently married and we both work full time

I was wondering if there any immediate tax benefits to telling revenue we are married or does the benefits only kick in if one of us isn't working

You can transfer tax credits between you so if one is paying the higher rate of tax and the other is paying the lower rate, you should transfer tax credits to the higher earning spouse.

mickman

Sociopath2 wrote: »

You can transfer tax credits between you so if one is paying the higher rate of tax and the other is paying the lower rate, you should transfer tax credits to the higher earning spouse.

This would only matter if the lower paying spouse wasn't on the higher rate at all ?

Sociopath2

mickman wrote: »

This would only matter if the lower paying spouse wasn't on the higher rate at all ?

If you ask on the taxation forum they will be able to give you a run down on exactly how it works. Basically you are being assessed jointly by revenue.

It's been a while since I had to set it up. I can't remember the exact circumstances where you can maximise the benefit but I do recall that whatever you do you won't end up worse off than if you were assessed separately.

Sociopath2

There may also be something about a different tax band for married couples. Worth checking out.

mickman

Sociopath2 wrote: »

There may also be something about a different tax band for married couples. Worth checking out.

Ok thanks

Sniipe

I always wondered if there was any tax benefits if both members are above the tax band.

jon1981

Didn't they do away with tax benefits due to equality with non married couples? As far as I know you can only claim the credits from your married partner if he/she are not working.

Dard23

Alternatively wait till the end of the year and have the revenue do a review. It can be nice getting a few hundred back that you didn't expect.

maggiepip

jon1981 wrote: »

Didn't they do away with tax benefits due to equality with non married couples? As far as I know you can only claim the credits from your married partner if he/she are not working.

No, you can transfer your credits to either spouse if both are working , you can choose on the basis of which works out better. If one spouse isn't working the other can take all their tax credits.

jon1981

maggiepip wrote: »

No, you can transfer your credits to either spouse if both are working , you can choose on the basis of which works out better. If one spouse isn't working the other can take all their tax credits.

Ok but that's pretty much it right? say for arguments sake both are earning over the higher tax threshold, is there any benefit in transferring ? why would you do this while both are working?

relax carry on

jon1981 wrote: »

Ok but that's pretty much it right? say for arguments sake both are earning over the higher tax threshold, is there any benefit in transferring ? why would you do this while both are working?

If both are using up their tax credits and rate bands, then there is no real benefit to it. However there is nothing stopping you opting for joint assessment and leaving the credits and rate band split 50/50 between you. This will allow you to transfer credits and rate band between you to cover unforseen situations like redundancy, reduced income from reduced hours etc. Note Note, only some credits and a portion of rate band are ttransferable, not all.

Boots234

relax carry on wrote: »

If both are using up their tax credits and rate bands, then there is no real benefit to it. However there is nothing stopping you opting for joint assessment and leaving the credits and rate band split 50/50 between you. This will allow you to transfer credits and rate band between you to cover unforseen situations like redundancy, reduced income from reduced hours etc. Note Note, only some credits and a portion of rate band are ttransferable, not all.

We are looking to sort this out also but aren't sure exactly where to start, would an accountant be the best person for this and also to give advice regarding pensions etc?

CIARAN_BOYLE

jon1981 wrote: »

Ok but that's pretty much it right? say for arguments sake both are earning over the higher tax threshold, is there any benefit in transferring ? why would you do this while both are working?

but its best to have it joint even if left 50/50 so as to be able to transfer easily in case of redundancy or maternity leave