Increase in Tax Bands Through receipt of carers allowance

bigaudio

Hello
I am hoping to gain some guidance around my issue as outlined below:

• We are a married couple, with one income (from myself).
• Therefore we pay income tax @20% to €42800 and 40% on income above that.
• My wife will now be receiving carers allowance for our daughter.
• Does this allow us to be assessed as a couple of thus avail of the increase of the 20% income tax rate up to an income of €67600?

I know that if my wife was working we would be able to have a combined assessment but am unsure as the her income will be via a Social Welfare Payment.
Many thanks for any guidance:)

CIARAN_BOYLE

bigaudio wrote: »

Hello
I am hoping to gain some guidance around my issue as outlined below:

• We are a married couple, with one income (from myself).
• Therefore we pay income tax @20% to €42800 and 40% on income above that.
• My wife will now be receiving carers allowance for our daughter.
• Does this allow us to be assessed as a couple of thus avail of the increase of the 20% income tax rate up to an income of €67600?

I know that if my wife was working we would be able to have a combined assessment but am unsure as the her income will be via a Social Welfare Payment.
Many thanks for any guidance:)

You already have combined assessment. It's 33800 20% band each and a max of 9000 that can be transferred between spouses.

Tax of 20% would be due on your wife's social welfare payment but it allows her access to the paye tax credit which she doesn't currently have so there would be no net charge.

bigaudio

Thank you
That certainly sense