tax implications

bpm78 wrote: »

Hi,
My wife is taking time off work in the new year.
What are the implications in relations to credits or indeed anything else that we should consider.
Can/should I get all credits transferred to myself.
Any other gotchas or benefits we should be aware of.

Thank you.

How much time is she taking off and when?

bpm78 wrote: »

hi.

she is a teacher.
taking from january to june after a maternity leave.

Ok - will she be getting paid anything from her employer? It's worth keeping in mind as well that Maternity Benefit is now taxable as well.

In a lot of cases, the employer will "top up" payments, so that a full wage is still paid, with the Maternity Benefit included

bpm78 wrote: »

well this is post maternity.
it is unpaid leave come January.

Ah, ok then.

There's potential there for you to take some of her Standard Rate Band, and maybe some or all over her personal credit.

You can take a max of 9000 worth of her SRB, which would leave her with 24,800 @ the 20% rate for the entire year.

If you were to take 1650 of her personal credit, she would still have 1650 of a PAYE Credit, which would cover:

1650 x 5 = 8250 worth of income "tax free"

USC rates etc cannot be transferred