Tax after marriage?

Zascar

Can anyone tell me about the tax advantages of getting married? What is the difference and are there different ways to approach it? If I get married now is it immediate or only in the next tax year?

If my partner is not working, or only working a low wage job - does it make sense for me to take all her tax credits if I'm a high earner?

Any advice appreciated.

carleigh

Zascar wrote: »

Can anyone tell me about the tax advantages of getting married? What is the difference and are there different ways to approach it? If I get married now is it immediate or only in the next tax year?

If my partner is not working, or only working a low wage job - does it make sense for me to take all her tax credits if I'm a high earner?

Any advice appreciated.

In the year of marriage you both continue to be assessed as single people. You have to notify Revenue of your intention to be jointly assessed by completing an accessible spouse election form. You can request a year of marriage review for the year you got wed which could result in a possible refund dependent on your situation.

The higher earner in the marriage can get an increased rate band and the personal credit is transferable between spouses. But Revenue need to be told whom you want to name the assessable spouse and you have to allocate the credits the way you want. Give them a ring if you have any questions, they are very helpful ðŸ˜

Zascar

Thanks that's really helpful. I'm hoping I may get a few quid back - but I really have to learn how all this works!

Water John

Ha, I'm just marrying you for your tax credits. Your a brave lad.

B00MSTICK

Water John wrote:

Ha, I'm just marrying you for your tax credits. Your a brave lad.

Or else he loves them and is just being smart?

If you take a look at the online tax calculators like this one, you can see the difference being married makes.

Should be a few hundred a month if you are on the higher band.
Hopefully budget 2017 will be good to us too!

Zascar

Water John wrote: »

Ha, I'm just marrying you for your tax credits. Your a brave lad.

I will soon be getting married. There are tax benefits to getting married, it would be silly not to take advantage of them.
No idea where you got "Getting married for tax reasons" from.

srsly78

If both partners are working, then there are no tax benefits to being married. Calculate the total and you will see married couple pays same as if they were both single.

All that happens is moving tax credits around, is only beneficial is one partner does not use their credits.

Toots

After I got married I was earning a fair bit less than my husband, so we split the tax credits 80/20 to him and that worked best for us. The revenue were really helpful when I rang them about it because I was hugely confused Now that I'm not working, my husband gets all the tax credits. They were able to sort everything over the phone, and it was very straightforward.

Zascar

My other half is not working right now, sometimes works part time. I just did it via the calculator and if I take all her tax credits I get a few hundred euro each month extra. So it would make sense to do it that way I'd guess..

GingerLily

You'd be a fool not to if there's a benefit to your family! Nothing greedy about not paying over your entitlement!

Water John

It was said in humour, OP.

foodaholic

So if both of you are in full time employment there is no Benifit in Registering for married tax status

srsly78

Not necessarily, both have to be high earners (ie marginal tax rate). Of course our marginal rate kicks in at 33.8k which is not that high!

foodaholic

srsly78 wrote: »

Not necessarily, both have to be high earners (ie marginal tax rate). Of course our marginal rate kicks in at 33.8k which is not that high!

We'd both be above 33.8k

pooch90

You can back date it can't you?
Married 2 yrs and never got around to it. OH was on very low income for the two years so would be due a decent rebate I'd say.

Lockedout2

in Ireland there are two main tax credits the individual Credit (Single or Married) and the PAYE Credit.

A married person can claim the total credit for both ie €3,300 if one is not working.

If one spouse earns less than €24,800 then the other spouse can use €9,000 of the standard band.

So potentially the benefit could be €1,650 and €1,800. If they couple have a child a home carers credit may be available.