Confused about tax

Sanjuro

Hi. I have a question regarding how I'm being taxed on my salary. I'm a married man, 35, two kids. Both my wife and I work, PAYE employees, etc. I've run my details through a number of different tax calculators in order to find out what my net take home pay should be. I'm finding that what I'm getting in my wage packet seems to be what I would be getting if I was being taxed as a single person rather than a married person. In other words, I'm getting less in my take home pay than I should be. Is it possible I'm being taxed as a single person rather than a married person? And if so, how do I rectify this?

I apologise if this is a basic query. I find the taxation thing very confusing.

McG

Sanjuro wrote: »

Hi. I have a question regarding how I'm being taxed on my salary. I'm a married man, 35, two kids. Both my wife and I work, PAYE employees, etc. I've run my details through a number of different tax calculators in order to find out what my net take home pay should be. I'm finding that what I'm getting in my wage packet seems to be what I would be getting if I was being taxed as a single person rather than a married person. In other words, I'm getting less in my take home pay than I should be. Is it possible I'm being taxed as a single person rather than a married person? And if so, how do I rectify this?

I apologise if this is a basic query. I find the taxation thing very confusing.

it may be own to how your tax credits are split between you and your wife. Give revenue a call, they're normally quite helpful.

Pippa!

You can ring the PAYE helpline, or, have you got your "my account" set up on ROS? That'd probably be the best option as you can go in and see exactly what tax credits etc you are getting, and claim ones you're entitled to and aren't already getting.
Are you recently married? You have to notify Revenue of your changed civil status and request to be assessed as a married couple, if you haven't notified Revenue it's possible you're still being assessed as a single person.
Maybe best to just give them a call, they're usually very helpful :-) (Google PAYE helpline and pick your region)
Best of luck!

Uncle Mclovin

Check your tax credits and cut off on your payslip.
If you and your wife both work she both should get 3,300 in tax credits each and 33,800 in cut off each. You can transfer credits between each other also and this may be the reason that you are being taxed so heavily. It could be that your wife has your credits or cut off allocated to her.
Cut off means that you are taxed at 20% up to that amount. So if you earn over 33,800 a year anything above that figure will be taxed at 40%.

EG. Weekly salary €800 gross
Tax Credits 3,300 or 63.46 per week (3,300/52)
Cut off 33,800 or 650 per week (33,800/52)

Tax Calculation
650 @ 20% = €130
150 @ 40% = €60
Total tax = €190
Less Credits = €63.46
Tax Paid = €126.54

You may also be emergency taxed if you started recently.

Wheety

If you're both paye workers there may not be any difference in how you're taxed. You have to inform Revenue when you get married and in that year you will continue to be assessed as a single person.

You can continue to be assessed as 2 single people but you have to inform Revenue. You can be assessed jointly and move tax credits from one person to another.

You don't get extra credits just because you're married but can move them around to maximize take home pay. i.e. if you're on the higher rate and your wife is on the lower rate, she can give you some of her credits as it would be more beneficial that way.

jimmycrackcorm

Uncle Mclovin wrote:

Cut off means that you are taxed at 20% up to that amount. So if you earn over 33,800 a year anything above that figure will be taxed at 40%.

For a joint assessment I think they give a cutoff to one spouse at 42000 and the other spouse gets a cut off at 24000 approx.

At least this is how mine is. I'm at a disadvantage as Mrs corm earns less than me but gets the higher cutoff so I get screwed in tax.

toadfly

jimmycrackcorm wrote: »

For a joint assessment I think they give a cutoff to one spouse at 42000 and the other spouse gets a cut off at 24000 approx.

At least this is how mine is. I'm at a disadvantage as Mrs corm earns less than me but gets the higher cutoff so I get screwed in tax.

Those are the max and min they will leave someone with. Why dont you change it that you are the assessable spouse? Do you do a P21 every year to get the refund?

Pippa!

Jointly assessed is only really an advantage if the lower income spouse earns less than €24,800... But you can allocate rate bands and credits either way you like on "my account" or by filling out the assessable spouse election form and posting it in...

toadfly

Pippa! wrote: »

Jointly assessed is only really an advantage if the lower income spouse earns less than €24,800... But you can allocate rate bands and credits either way you like on "my account" or by filling out the assessable spouse election form and posting it in...

No its not! One could be on 30k and one on 40k with an advantage!

BabyWillis

First of all a married couple get no more credits or cut off than two single people the only difference is that these credits and cut off can be transferred between a married couple.
It then only makes a difference to transfer cut off if one spouse is earning more then the cut off of €33,800 an the other is earning less. If both earn more or less there will be no differnce.
If it is the case that one earns more than the €33,800 and the other earns less, transfer the difference between the €33,800 and the spouse that earns less to the other spouse. Eg wifes earns €40,000 husband earns €30,000, so the husband transfers €3,800 of his cut off to his wife.
Then we have tax credits, it only ever makes sense to transfer tax credits if one of the spouses earns less than €16,500, if one spouse does earn less than this you transfer 20% of the difference to the other spouse. Eg wife earns €10,000 husband earns €40,000, the wife should transfer €1,300 tax credits to her husband and also in this situation €6,200 of her cut off.
Edit: to add that the maximum cut off transferable between a married couple is €9,000 and the maximum tax credit transferable is €1,650.

Sanjuro

Thanks for the replies. I spoke to revenue this morning, and it seems like BabyWillis, that's what they told me. Nothing extra. Still taxed at the same rate. It's just a bit depressing as I'm due a wage increase next month, and although my gross salary will increase, the net after tax will barely increase at all. More work for little extra gain.

ibarelycare

Sanjuro wrote: »

Thanks for the replies. I spoke to revenue this morning, and it seems like BabyWillis, that's what they told me. Nothing extra. Still taxed at the same rate. It's just a bit depressing as I'm due a wage increase next month, and although my gross salary will increase, the net after tax will barely increase at all. More work for little extra gain.

Does your wife earn under €33,800? If so, you can transfer some of her standard rate cut-off point to you.