Rental income - Joint assessment

will56

Hi,

My wife is starting maternity leave this year and I'm wondering how best to use her credits for a rental income I have.

We have been seperately assessed for the last 5 years as our PAYE incomes are almost the same and just under the cut off.

Is it as simple as using her P60 for this year when paying the 2017 balance in 2018 ? Same again for the 2018 return ?

Do I need to do anything else before making my return next year ?

Would it be a worthwhile exercise amending previous returns to be joint assessed or could that raise flags with Revenue ?

gerrybbadd

You can't retrospectively apply for Joint Assessment. You will need to write to Revenue for next year, requesting this, before the end of March. Both of you need to sign the letter, and nominate an assessable spouse, which would be you.

With regard to using her tax credits etc, if she's receiving Maternity Benefit from DSP, this is taxable also, so there may be no tax credits to actually transfer.

When submitting your return (and as you are separately assessed, you are both meant to make separate returns), request that revenue check for unused allowances and transfer anything that's transferrable to you when reviewing the year

will56

gerrybbadd wrote: »

With regard to using her tax credits etc, if she's receiving Maternity Benefit from DSP, this is taxable also, so there may be no tax credits to actually transfer.
r

Her maternity leave is capped at 70% so there may be something left

gerrybbadd wrote: »

When submitting your return (and as you are separately assessed, you are both meant to make separate returns), request that revenue check for unused allowances and transfer anything that's transferrable to you when reviewing the year
r

I submit my return each year online using ROS. There is an option there for seperate or joint assessment. Is it not as simple as ticking that and putting in the other persons details ?

exaisle

will56 wrote: »

Is it not as simple as ticking that and putting in the other persons details ?

It wouldn't be the first time that's been done (and not noticed by Revenue) but it's not the correct way. You need to fill in an Assessable Spouse Election form...as that effectively links the non-assessable spouse with the assessable one.

jaffusmax

gerrybbadd wrote: »

You can't retrospectively apply for Joint Assessment. You will need to write to Revenue for next year, requesting this, before the end of March. Both of you need to sign the letter, and nominate an assessable spouse, which would be you.

With regard to using her tax credits etc, if she's receiving Maternity Benefit from DSP, this is taxable also, so there may be no tax credits to actually transfer.

When submitting your return (and as you are separately assessed, you are both meant to make separate returns), request that revenue check for unused allowances and transfer anything that's transferrable to you when reviewing the year

You can claim joint assessment retrospectively, an election to be be separate assessed must be made before the end of March in the current year. It would be no harm being joint assessed as you can't be worse off the any other basis of assessment. If you wife goes on unpaid leave then there will be unused credits available.