Married Couple Tax - are you always better off?

Monfreid

Hello,

I'm looking at the tax rates for married couple and I was wondering if the "42,800 eur @ 20%" apply to each individual or to the combined income of the 2 person?





[th][/th]
[th]2015[/th]
[th]2016[/th]

Single
33,800 @ 20%, Balance @ 40%
33,800 @ 20%, Balance @ 40%





Married or in a Civil Partnership
42,800 @ 20% (with an increase of 24,800 max), Balance @ 40%
42,800 @ 20% (with an increase of 24,800 max), Balance @ 40%



Are you always better off to be taxed as a married couple or is there exceptions (let's say if both people are above 43K)
Thank you

relax carry on

The 42800 figure is made up of the single persons cut off point and the max 9000 euro transferable from one spouse to another. If one spouse has the 42800 figure as their cut off it means the other spouse has dropped down to 24800 euro cut off. Moving rate band in this manner I'd useful where one spouse is not utilising their rate band fully or at all.

If both spouses are earning over the 33800 euro cut off, there's no real point switching rate bands about as what one spouse gains, the other looses.

Monfreid

relax carry on wrote: »

If both spouses are earning over the 33800 euro cut off, there's no real point switching rate bands about as what one spouse gains, the other looses.

That's what I was suspecting but wasn't sure. Thanks :-)