Joint tax assessment

Escapees

Just double checking, is it still the case that Revenue only allow joint tax assessment for couples who are married or in civil partnerships?

I've been with my partner for over 10 years, we have a joint mortgage, joint bank accounts and in the past have been treated as a cohabiting couple (common law spouses) when it came to social welfare. It seems crazy then that when it comes to getting social welfare support, our partnership is recognized and works against us financially. But when it comes to paying tax, our partnership is not recognized and we are assessed singly, which again works against us financially!

If this is how the system works, surely it is legally possible to challenge it? There are many couples these days who opt not to go down the marriage route or go for civil partnership (even if there are good reasons when it comes to inheritance or children).

relax carry on

Escapees wrote: »

Just double checking, is it still the case that Revenue only allow joint tax assessment for couples who are married or in civil partnerships?

I've been with my partner for over 10 years, we have a joint mortgage, joint bank accounts and in the past have been treated as a cohabiting couple (common law spouses) when it came to social welfare. It seems crazy then that when it comes to getting social welfare support, our partnership is recognized and works against us financially. But when it comes to paying tax, our partnership is not recognized and we are assessed singly, which again works against us financially!

If this is how the system works, surely it is legally possible to challenge it? There are many couples these days who opt not to go down the marriage route or go for civil partnership (even if there are good reasons when it comes to inheritance or children).

Marriage or civil partnership only.

https://www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/marriage-and-civil-partnerships/taxation-after-year-of-marriage-or-registration-of-civil-partnership.aspx

wiggle16

Escapees wrote: »

But when it comes to paying tax, our partnership is not recognized and we are assessed singly, which again works against us financially!

Oh for God's sake, come off it.

Getting married means that the state gives legal recognition to your relationship.

You won't seek legal recognition for your relationship, but then complain that the state doesn't give you legal recognition? Come on, like.

If this is how the system works, surely it is legally possible to challenge it?

No, it's not. It's spelled out very clearly in the taxes consolidation act 1997. Any alternative system would be too chaotic to implement anyway.

Escapees

wiggle16 wrote: »

Oh for God's sake, come off it.

Just a straight answer would have sufficed.

My point was in relation to the fact that when it comes to social welfare, my partner is recognized as a common law spouse and we are treated equivalently to a married couple, but this is not the case when it comes to taxation. I am simply querying why the difference.

In effect, the state opts to recognize our relationship when it comes to social welfare but not when it comes to taxation.

wiggle16

No difference in treatment or recognition arises, because in your case the state is not recognising anything, for social welfare or for tax.

When evaluating your entitlement to social welfare, the system takes your personal circumstances into account. Are you cohabiting, does that person work, etc. You are assessed based upon your circumstances as one of a cohabiting couple - the state isn't recognising your relationship. It doesn't matter who that person is, and it doesn't matter if you have been cohabiting for ten years or ten days.

With tax, it does matter who that person is, because in order for you to gain any benefit from being jointly assessed then their unused credits and available rate band have to be transferred over to you, on both of your records. The state makes this available for married couples/civil partnerships because any other arrangement would be chaotic (what criteria would be used to decide which relationships confer an entitlement to joint assessment and which don't) and open to abuse (I'm single and on a low income, under another arrangement there would be nothing stopping me from telling Revenue that I'm in a relationship with my friend and giving him my unused rate band. No one could prove otherwise). It would also be extremely cumbersome to operate.

Escapees

Thanks for the detailed response. I understand exactly what you are saying in relation to tax and agree that the system could be more open to abuse if general 'partners' were recognized.

However, that said, the dept of social protection does clearly recognize cohabiting couples (note specifically couples as opposed to anybody) and have established reasonable criteria for doing so. See www.welfare.ie/en/Pages/Cohabitation.aspx

While there is no formal transfer or sharing of tax entitlements for such couples, there is still sharing of means and social welfare entitlements etc. For example, one partner can claim entitlements on behalf of the other (dependent adult) in much the same way as a husband might use his wife's tax credits if she opts to not return to work for a while after having kids. (Sorry for such an old-fashioned and perhaps sexist example, but it does tend to be the most common).

I'm not trying to argue with you, it's just that I genuinely can't see the rationale for couples being treated differently by the two government depts (bar perhaps a slight legal technicality when it comes to tax credits and status).