Home careers tax credit query

coffeyt

I didn't return to work after my second child last year. I was claiming my jobseekers benefit for 9 months until March of this year, was hoping to find work that would fit in with childcare etc. But this isn't proving possible where I have 2 under 2 so childcare costs would basically annihilate my wages!

So my husband started claiming home careers tax credit last month and they have deducted money off his credits and his tax band cut off for my JA.

This all sounds ok in theory but I notice his tax rate band is now at 42,800 when all along it was 67,600 (with 24,800 allocated to me)

It looks like my allowance has just disappeared and its actually costing us to claim the 1100 home careers? Also my paye of 1650 has disappeared but don't know if this is standard but I know when I claimed maternity benefit the deductions for this came off my own allowances.

If anyone was able to follow all of that and can explain how it works, I would appreciate it!

carleigh

The PAYE tax credit is non transferable so your spouse cannot get the benefit of this if you are not working. Also, €42800 is the max rate band your spouse can be in receipt of. The €1100 home carers credit will have been added to your spouses credits i.e. 3300 +1650 +1100.

coffeyt

Yes the 1100 has been added to his and im aware that the 1650 paye credit is not transferable and that 24,800 of the tax band is not either but previously when revenue have made deductions for maternity benefit it came off my allowances whereas they have now taken the deductions from my husbands tax credits and mine just no longer seem to exist on the tax credit cert. That's what I can't seem to figure out? Maybe claiming the home careers automatically cancels out my entitlement to paye tax credit?

And previously our joint tax rate band was just over 67,000, the maternity benefit I got reduced that but it came off the 24,800 allocated to me while my husband retained his full amount of 42,800. Now his tax band only shows the 42,800 and they took my deduction from that?

jjjd

coffeyt wrote: »

Yes the 1100 has been added to his and im aware that the 1650 paye credit is not transferable and that 24,800 of the tax band is not either but previously when revenue have made deductions for maternity benefit it came off my allowances whereas they have now taken the deductions from my husbands tax credits and mine just no longer seem to exist on the tax credit cert. That's what I can't seem to figure out? Maybe claiming the home careers automatically cancels out my entitlement to paye tax credit?

And previously our joint tax rate band was just over 67,000, the maternity benefit I got reduced that but it came off the 24,800 allocated to me while my husband retained his full amount of 42,800. Now his tax band only shows the 42,800 and they took my deduction from that?

If you're not working then you're not entitled to the PAYE credit - it is linked to employment.