Assessable Spouse Election Form - Best Option to Fill In

Pizzle

Hi everyone,

I've checked a few different posts about this but I'm still a bit unsure about what the best option is in my situation when completing the Assessable Spouse Election Form.

I'm currently earning about €80k per annum and my wife has moved to a part-time position where she is on about €25k per annum. Both PAYE.

It looks like there would be a clear benefit for us to be jointly assessed but I'm not sure which of the options in part (b) is the most suitable.

My initial thought is that I should select the option that says "have transferable tax credits and standard rate band allocated to the assessable spouse". Am I right in assuming that this is the most straightforward approach? My wife would continue to pay her tax as usual and then any standard/higher rate balance that she has not used would be transferred to me at the end of the year. Right?

Alternatively, I could imagine that the option "have your tax credits and standard rate band divided equally between you" would also work. Again, we would continue to pay tax as normal and then any relevant balances at the end of the year would be transferred between us to minimise the tax payment, right?

Any advice on this would be greatly appreciated!

Thanks.

another36

I'd say go with their suggestion on the split once you input both your salary levels. Splitting equal wouldn't be the best option because of the ability you have to transfer the unused cut off allowance.

Unless it suits you better to receive a lump sum once a year instead of an increased salary on an ongoing basis.

We split equally but that's because we are both on a similar salary level over the cut off.

Pizzle

https://www.boards.ie/discussion/comment/120063634#Comment_120063634

Thanks for that another36. I can put in our estimated salaries but I'm still a bit unsure about how to fill in part (b). Getting a lump sum once a year (where applicable) would probably suit us best but would you know which of the options in (b) would be most appropriate for this?

My guess would be "have transferable tax credits and standard rate band allocated to the assessable spouse" but I'm not sure if there is a correct assumption.

Any advice is greatly appreciated!

another36

I do it online so it's a bit different but If you want a lump sum every January equal split would be the better option than opting for transferable tax credit and band transferred by their estimate based on projected salary.

We used to do this when I was part time we would equal split and then in January apply for a balancing statement including med1 and receive a refund. It suited us at the time too as it was savings and the lump sum was more useful in our lives.