Married Tax Credits how to split?

curiousJudg

Hi

Wondering if somebody could give me some advice, husband works full time but on minimum wage of €10.10 per hour - €18889 per year. I work full time at about €60k gross per year. I am trying to maximise the split on tax credits and a friend had said to me that husband won't need a full half of tax credits due to his lower wage?

Could anybody recommend a suitable split on the married tax credits?

XsApollo

If I was you I would take them all.
Increase your 20% rate band to the max allowed and take all the credits.
So your 20% rate would be 44,500 I think and you would have 3300 tax credits.
There is minimal tax to pay on your partners income.

curiousJudg

Thanks for that!

My concern was just that he has taken a massive pay cut to work in this new job (health reasons) he's struggling with the low level of income he's now on so i don't want his weekly income reduced even further. I'm expecting his net pay to be in the region of €360 or there abouts each week - would my keeping the tax credits affect that i.e make it even lower?

Sorry - I always struggled to understand the tax situation

ahnowbrowncow

I'd take the full rate band increase as your husband doesn't use all of his. I wouldn't take any of his tax credits as they appear to be fully utilised and are the reason there is minimal tax deduction on his net pay.
Doesn't make any difference if you took his tax credits but it might be disheartening for your spouse seeing his minimum wage pay being reduced further.

Edit: Just seeing your response, increase your rate band to the max allowable of €44,300 and leave the tax credits as they are, this won't affect his pay.

radiotrickster

curiousJudg wrote: »

My concern was just that he has taken a massive pay cut to work in this new job (health reasons) he's struggling with the low level of income he's now on so i don't want his weekly income reduced even further.

Can I ask, do you share bank accounts and split your wages? Because if you do, it shouldn’t make much of a difference to him if you’re sharing your money between you.

curiousJudg

ahnowbrowncow wrote: »

I'd take the full rate band increase as your husband doesn't use all of his. I wouldn't take any of his tax credits as they appear to be fully utilised and are the reason there is minimal tax deduction on his net pay.
Doesn't make any difference if you took his tax credits but it might be disheartening for your spouse seeing his minimum wage pay being reduced further.

HI thanks, we share bank/bills everything, it all goes into one pot so I understand why people would say take all the credits as it's combined income, however mentally it will be a bit hard on him if an already much reduced income is taxed even further. I can't go into too much detail but I think the best thing is as you say take the rate band increase but leave the credits.

curiousJudg

ahnowbrowncow wrote: »

Edit: Just seeing your response, increase your rate band to the max allowable of €44,300 and leave the tax credits as they are, this won't affect his pay.

As it stands I have all the tax credits, do you mean leave them as they are or should I split them equally?

ahnowbrowncow

curiousJudg wrote: »

As it stands I have all the tax credits, do you mean leave them as they are or should I split them equally?

It won't make any difference financially whether you take all the tax credits or split them equally. It just means either your or your husband's payslip will have less tax deducted than the other so it's up to you.