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Disparity between joint and sole assessments

  • 10-01-2016 11:40PM
    #1
    Registered Users, Registered Users 2 Posts: 12,784 ✭✭✭✭


    We are jointly assessed for tax. I was a PAYE worker. My wife is self employed

    I was a PAYE worker up to 31/12/2014. My P60 shows final income of 76,979. Total pay for USC purposes is 78,596.
    Tax paid 17,833. PRSI paid is 2,736. USC paid is 4820.

    My wife is self employed. Her nett profits after EXPENSES is 10,474 for 2014. Her capital allowances are 1030 (all for 2014). Our health expenses tax credit for the year came to 120.

    Our accountant worked out that our extra combined tax bill for 2014 was 2264 (including my wife's minimum self employed PRSI of 500)

    However, I worked out myself what my wife's tax bill would be as on her own, and it works out at €232 tax and PRSI of €500. Why is there such a disparity between the joint amount we owed, and what she owes for her self employed income ?

    Is the difference attributable to my tax situation ? As PAYE, I would have assumed that my tax was taken correctly at source

    I can't figure it out. Any guidance would be much appreciated


Comments

  • Registered Users, Registered Users 2 Posts: 14,595 ✭✭✭✭CIARAN_BOYLE


    Why not talk to your accountant. I can only guess as I am not being paid to run calculations I won't. I assume that you have your wifes tax credits and COP allocated to your PAYE employment which you used for your wife while doing your calculation.

    The personal tax credit which is transferable between spouses for example is €1,650.


  • Registered Users, Registered Users 2 Posts: 12,784 ✭✭✭✭Ally Dick


    On my final payslip, it shows that my tax credits are €4950. Is that what is causing this I wonder ? As a married couple, where I am PAYE and my wife is self employed, is the maximum tax credit available between both of us €4950 ? Does this mean that her net income of €10474 is thus fully taxable apart from the capital allowance of €1030 ? I am happy enough if that's the case


  • Registered Users, Registered Users 2 Posts: 14,595 ✭✭✭✭CIARAN_BOYLE


    Ally Dick wrote: »
    On my final payslip, it shows that my tax credits are €4950. Is that what is causing this I wonder ? As a married couple, where I am PAYE and my wife is self employed, is the maximum tax credit available between both of us €4950 ? Does this mean that her net income of €10474 is thus fully taxable apart from the capital allowance of €1030 ? I am happy enough if that's the case

    Yeah you are taking €1,650 of her credits here

    €1,650 personal credit you
    €1,650 personal credit (her transferred)
    €1,650 paye credit you


  • Registered Users, Registered Users 2 Posts: 12,784 ✭✭✭✭Ally Dick


    Many thanks Ciaran


  • Registered Users, Registered Users 2 Posts: 6,191 ✭✭✭screamer


    Your tax deductions are in order I worked them through manually for you. I can't comment on your wife's as I don't know how the accountant is calculating her tax.


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  • Registered Users, Registered Users 2 Posts: 12,784 ✭✭✭✭Ally Dick


    screamer wrote: »
    Your tax deductions are in order I worked them through manually for you. I can't comment on your wife's as I don't know how the accountant is calculating her tax.

    Thanks Screamer


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