Are you Married?
It’s well worth knowing what Tax Assessment Basis is – and how this could affect your tax bill / tax refund
In the year you are married, you continue to be taxed as a single person – but you may be due a refund through a Year of Marriage Review.
In the years following Marriage, there are 3 basis of assessment allowed:
- Assessment as a single person (Separate Treatment)
- Separate assessment
- Joint assessment/aggregation.
If you get the assessment basis wrong, this will probably cost you in terms of overpaid tax.
So what’s the Difference?
Joint Assessment: With Joint assessment, your tax credits and tax bands can be shared or allocated between the spouses. So this allows one spouse to allocate some of their tax bands/credits to the other in the current year and back across previous years. or not, as you wish. This is the assessment basis you should use to minimise the tax bill you will have in your current year payslips. It will also ensure your tax for previous years is minimised.
Separate Assessment: This differs from Joint assessment in that your current year tax credits cannot be transferred in any way between the spouses. But you can still review your taxes as a married couple at the end of the year, and if their had been any benefit in transferring tax credits / bands, this will be done automatically.
Assessment as a single person: With this, you will be treated as a single person, so no tax credits or income deductions or tax bands can be shared. Once this basis has been chosen for a year, then you cannot remove it in hindsight. This can adversely affect your tax situation, by amounts in excess of €3,000 p.a.
Which basis to use?
We have seen numerous examples of people overpaying tax by up to €10,000 because they selected the wrong basis of assessment. Our simple advice in this matter is not to choose “Assessment as a single Person” unless you have received professional advice on this matter.
In what circumstances would you choose Assessment as a Single Person? I can’t think of any that are applicable to PAYE – any one aware of an applicable situation, I’d be glad to hear!
hi just wondering about the married tax, we r going as seperate tax but would it work out better if we went as a couple
how do i claim tax refund and what are your costs
regards
ciaran
Hello. I wanna ask you how do i can claim married tax refund for year 2009 and what are your costs. I am married from 01/08/2009. Please just let me know. Thanks,regards Marian
hi. i,m liaving from ireland. can i get some tax back?
Hi Margaret,
Separate assessment is ok, because it still allows you to review your taxes jointly. It’s really the assessment as a single option person that is the problem. no need for you to change anything!
john
Hi Bob, good to hear from you again, we’ll check out your latest taxes and someone will get back to you today.
Hi Marian and Ciaran, we’ll get you on email or phone if that suits?
i dont think i ever claimed tax back on any job how do i go about finding out i havent worked or paid tax in 8 years
hi im married since 2007,and my tax is still single,was wondering if i could get tax back.
Hi Philomena,
Even if you haven’t worked in the Last 4 years (we can only look back to 2006 for refunds), If you are married, this can make a difference to how much tax your husband is paying. We’ll get in touch on email to see what we can get back for you.
Ray
getting married next year. mortgage is in my name and i am currently a single mother. will my mortgage increase when i get married? both myself and my fiance work full time.
Got married in may, wanted to know about claiming tax back.
Hi,
Im married since Aug 2009, my husband has recently returned back to work (tg)…But as one of us earns more than the other should our tax credits be divided up differently…I heard this in this past, but not sure if there’s any truth in it or if so how should we divide out such tax credits…Thank You
Hi Emer,
Firstly, Congrats to your husband on finding work – well done.
As a married couple you can split some of your tax credits between you – and it can make a big difference, increasing both your monthly take home pay. But it does depend on how much you both earn and how the tax credits are already split.
You must also get it reviewed at the end of the year, as in cases where your pay levels change during the year, splitting the tax credits may not be an exact science.
You should also make sure you get a “Year of Marriage” review for 2009. In 2009, you are still treated as single, but their is an end of year assessment that often results in refunds.
You can give me a shout on 05991 73300 if you would like to know more.
Hi,
I have been married since May 2009, I have not changed anything about my tax. Both myself and my husband work full time. I am on maternity leave at the moment but will be returning to work next week. Would it be best to share our tax credits and would we be entitles to a refund?? Any info would be greatly appriciated.
Sharon
hi sharon,
in your situation, you are still treated as single in 2009, but could be due a refund through a “Year of Marriage” review.
in 2010, if your maternity leave was unpaid, other than maternity benefit, then there could be large tax savings for you. However as you are going back to work now, I wouldn’t change how your tax credits are shared at this time of year – if you want until January you can get the full amount back.
Give me a call if you have any questions on this.
John
Hi,
Got married in feb 2010 we are both public servant workers, we are still claiming sigle tax credits we need advice in relation to tax credits as a married couple, would we be better off in the long term because we have been told that we would loose money as a married couple claiming tax. Your advice would be greatly appreciated.
regards,
mark.
Hi Mark,
If your taxes are done right, You’ll never lose money by getting set up as married. What can on occasion “go wrong” is if you have the Single Parent Tax Credit incorrectly.
Obviously, if you are married you shouldn’t get single parent tax credits. Other than that, the worst case scenario is “No Worse off”.
As you got married in the current year, For this year you can only be assessed as a single person anyway Mark, it’s only in January that any changes could be made.
Hope that helps,
John
hi just wondering about the married tax, we r going as seperate tax but would it work out better if we went as a couple