Week 1 v Cumulative

irishgal21

Hiya all, So my Partner is now back working and we are jointly assessed.

For about 2 months my partner was on emergency tax. I was getting my partners home carer credit while she was not working.

So I have asked revenue to remove the homecarer tax credit and instead, we both get the higher tax break of 84,000, you can't have both.

So I am now down €100 in my monthly wage I assume due to home carer credit removal.

We are both now on week1 basis. My partner has always been on week1 since she started work ( previous 2 months) and mine has recently changed to week1.

My spouse asked revenue why we are both still on week1

They answered "You are on week 1 due to your spouse no longer having the home carer tax credit. Week 1 is applied to avoid underpayment of taxes been collected through payroll."

So my question is, should we both request now to be changed to cumulative so as to receive a refund as soon as possible in our wages ?

I can't see how we might have underpaid over the last 2 months, and we would prefer any money owed to be repaid now rather than at the end of the year.

So should we request to be changed to cumulative or stay on week1 for the rest of the year ?

thx

plhealy2000

Tax is Underpaid as you had a tax credit that is no longer applicable.

Not knowing specific figures, you likely would owe money to revenue and this would further reduce your pay and all in one month if you were cumulative.

irishgal21

Thanks for the reply. So stay on week1 for the rest of the year and then ask for balancing statements ?

But what about the fact that my Spouse who is currently taxed at 40% over 51,000 for the year will now not be taxed at 40% this year , jointly we will not surpass the 84,000. so say previously my spouse was earning 60,000.

9,000 of that would previously have been taxed at 40%, this will now be 20% at the end of the year.

So we should defo end up better off ?

thx

plhealy2000

51k is the max one spouse can have.

The 84k applies where each spouse has at least 33k in income. Each has 42k allowance and 9k is available to transfer to spouse.

irishgal21

Hiya, so long term working spouse loses the Home carer credit and instead we jointly receive the increased tax band of 84,000.

Our circumstances, one spouse earns 60,000. recently working spouse earns 23,000 ie less than 33k for the year.

So we both now remain on a week 1 for the rest of the year and then send ONE , statement of liability in January ?

relax carry on

https://www.boards.ie/discussion/comment/122443780#Comment_122443780

As a you are jointly assessed, the assessable spouse is the only one who can file a tax return after the tax year ends. All income both spouses should be included on it alo g with any credits reliefs you are claiming. The tax return you file then generates a statement of liability. The statement of liability will show you your final position for the tax year whether you underpaid, overpaid or paid the correct amount.

lau1247

https://www.boards.ie/discussion/comment/122427181#Comment_122427181

Yes I think you stay on week 1 for the rest of the year.

As far as I know (Open to correction), once it is changed over, you cannot change back until end of year as it messes up with Revenue's calculations.

Dial Hard

https://www.boards.ie/discussion/comment/122462569#Comment_122462569

You can change back within the year. Revenue put me on a Week 1 basis when I started my new job in July and I immediately asked to be changed back to cumulative, which they've done and will apply from my August payroll.