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Splitting Tax credits

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  • 30-07-2020 9:27am
    #1
    ronald reagan
    Registered Users Posts: 74 ✭✭


    Hoping for some pointers/resource for tax and tax credits.

    im currently earning 30k per annum and my wife is earning 23k but somehow she is paying more tax than me.

    What is the best way to apportion tax credits.

    My Gross is 576 and my net pay is €521
    her gross is 434 and her net 299

    She is a civil servant and has some extra deductions like cycle to work scheme 5, civil service credit union 15 but still seems to be paying the lions share of the tax between us.

    We are jointly assessed and tax credits are split between us but im sure they are not split correctly.

    Thanks


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    #2
    wench
    Registered Users Posts: 1,631 ✭✭✭wench


    She has four pension deductions coming out of hers


  • Options
    #3
    ronald reagan
    Registered Users Posts: 74 ✭✭ronald reagan


    Hi Wench,

    do you mean in general civil servants have 4 pension deductions.

    Im looking at her payslip now and her deductions are
    usc
    paye
    prsi
    personal pension new scheme
    lump sum pens new scheme
    cycle to work
    credit union


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    #4
    wench
    Registered Users Posts: 1,631 ✭✭✭wench


    Ok, looking at that, you've got her 1650 personal tax credit.


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    #5
    ronald reagan
    Registered Users Posts: 74 ✭✭ronald reagan


    ok, So is the most tax efficent thing to do to split the credits based on the percentage of income.

    ie we have 53k combined my 30k is 57 percent and my spouse gets 47 percent of the credits?


  • Options
    #6
    Cape Clear
    Registered Users Posts: 2,606 ✭✭✭Cape Clear


    ronald reagan wrote: »
    Hoping for some pointers/resource for tax and tax credits.

    im currently earning 30k per annum and my wife is earning 23k but somehow she is paying more tax than me.

    What is the best way to apportion tax credits.

    My Gross is 576 and my net pay is €521
    her gross is 434 and her net 299

    She is a civil servant and has some extra deductions like cycle to work scheme 5, civil service credit union 15 but still seems to be paying the lions share of the tax between us.

    We are jointly assessed and tax credits are split between us but im sure they are not split correctly.

    Thanks

    Say nothing and hope she doesn't find out.


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  • Options
    #7
    ronald reagan
    Registered Users Posts: 74 ✭✭ronald reagan


    Its all ending up in the same place anyway.:)


  • Options
    #8
    wench
    Registered Users Posts: 1,631 ✭✭✭wench


    She is earning enough to use all her tax credits, so the most equitable thing to do is to allocate her €1650 back to her.
    Your household income will remain the same, but you will have €30 less and she €30 more.

    Just to add, you also have 2/3 of the higher rate band assigned to you.
    That's not a problem at the moment, as neither of you are hitting it anyway, but keep an eye on it as her salary increases.
    Once she goes over that €26,639 amount she would start paying higher rate tax, while you've still got unused band allocated to you.


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    #9
    ronald reagan
    Registered Users Posts: 74 ✭✭ronald reagan


    Hi Wench,

    Thanks for the info. appreciate it.


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    #10
    namenotavailablE
    Registered Users Posts: 59,572 ✭✭✭✭namenotavailablE


    I've a pay calculation spreadsheet which might be of some general help also- http://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm

    Free Excel net pay calculator- https://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm



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