Tax credit and cut off point for ARF beneficiary

Toblerone365

I recently turned 61 and have started drawing an ARF worth approximately €4000 gross per month.

I am continuing to work as a sole trader. My spouse has stopped working .

What tax credits and cut off points are I entitled to and how do I distribute them ?

Just trying to figure out whether its even worth my while continue working if I pay combined tax, PRSI and USC of 52% on every penny I earn because the credits and cut off point are used up by the ARF income.

I know it sounds like a first world problem to some and I apologise for this but still have hefty mortgage repayments to repay for the next three years so I want to get the best value for my buck.

Thanks

Geuze

You are taxed as normal.

Income from ARF is taxed like any other income.

Geuze

Hare are the tax bands:

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

Toblerone365

Great Information. To develope the point further , by my reckoning so , Geuze if I employed my spouse and say she earned €31,000 gross our tax credits would be €7100 ( PTC 3550+1775+1775) and the tax band threshold would be €80,000 €( 49k + €31k).

Would this be correct and would it be allowable if I took little or no income from the business so that my spouse can earn that €31k amount , even though I would be doing say , 90% of the work ?

Thanks so much