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  • 16-11-2015 10:08pm
    #1
    1eg0a3xv7b82of
    Closed Accounts Posts: 996 ✭✭✭


    hey quick question.
    my sister has returned to work last week. has not worked up to this in 2015.
    her hubby has had her credits up till now. joint assessment.
    revenue have informed her that she will have to pay 40% paye on all income because of the credit situation and revenue will sort it all out at end of year.
    my question is are revenue correct or can she have single credits - 1650 or part of.

    cheers


Comments

  • #2
    Howjoe1
    Closed Accounts Posts: 2,666 ✭✭✭Howjoe1


    He may have the married tax credit of 3,300, but she could claim a PAYE credit of 1,650 for herself(assume she is not self-employed) and there are rate bands that she could claim at the lower rate of 20% for the second spouse working,

    so unless there any other factors to her husband's position, seems the info she got might be wrong.


  • #3
    1eg0a3xv7b82of
    Closed Accounts Posts: 996 ✭✭✭1eg0a3xv7b82of


    Howjoe1 wrote: »
    He may have the married tax credit of 3,300, but she could claim a PAYE credit of 1,650 for herself(assume she is not self-employed) and there are rate bands that she could claim at the lower rate of 20% for the second spouse working,

    so unless there any other factors to her husband's position, seems the info she got might be wrong.

    thanks for the reply.
    Revenue say he has had 5760/52 = 111 credits per week until now including home carers credit. that is there reasoning for charging her 40% now until 31/12/15 and then in 2016 they will get a rebate if needed.
    and then in 2016 she will receive 1650 and he as the higher earner will get 4950 credits.
    does that make sense to you?


  • #4
    exaisle
    Registered Users, Registered Users 2 Posts: 2,675 ✭✭✭exaisle


    The PAYE credit isn't transferable and hubby has the carer credit of 810. However, at the end of the year they will be granted either the carer credit OR the PAYE credit, whichever is more beneficial to them,so leave that be.

    However, the part of this that puzzles me is that Revenue are insisting she pay tax at 40%. She should phone them and ask for the standard rate tax band of €23,800 (which is not available to hubby).

    Don't be afraid to argue with them, but be polite....they're human like the rest of us and they make mistakes too.


  • #5
    Howjoe1
    Closed Accounts Posts: 2,666 ✭✭✭Howjoe1


    Winston Happy Gasoline wrote: »
    thanks for the reply.
    Revenue say he has had 5760/52 = 111 credits per week until now including home carers credit. that is there reasoning for charging her 40% now until 31/12/15 and then in 2016 they will get a rebate if needed.
    and then in 2016 she will receive 1650 and he as the higher earner will get 4950 credits.
    does that make sense to you?

    MArried Credit: 3300
    PAyE Credit: 1650
    Home CArers: 810
    Total: 5,760


    Ah, the Home Carer's tax credit complicates thing a bit. Given the end of the tax year is near, probably best way is as proposed by Revenue and review then.


  • #6
    1eg0a3xv7b82of
    Closed Accounts Posts: 996 ✭✭✭1eg0a3xv7b82of


    exaisle wrote: »
    The PAYE credit isn't transferable and hubby has the carer credit of 810. However, at the end of the year they will be granted either the carer credit OR the PAYE credit, whichever is more beneficial to them,so leave that be.

    However, the part of this that puzzles me is that Revenue are insisting she pay tax at 40%. She should phone them and ask for the standard rate tax band of €23,800 (which is not available to hubby).

    Don't be afraid to argue with them, but be polite....they're human like the rest of us and they make mistakes too.

    Revenue told my sister that they fear that she and her hubby will earn over the lower thresholds and they - revenue - do not want to be owed money.
    So they charge the 40% so there is zero chance of Revenue losing out.
    Does that make sense to you.


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