Income tax question

[John_D]

Question,

Im brutal when it comes to taxation and paychecks so here goes,

My wife is reducing hours to part time, would it make more sense for us now to be jointly assessed ?
I assume it increases my tax cut-off point and as a result we pay less higher rate tax overall??

cheers.

[nsheridan]

Question,

Im brutal when it comes to taxation and paychecks so here goes,

My wife is reducing hours to part time, would it make more sense for us now to be jointly assessed ?
I assume it increases my tax cut-off point and as a result we pay less higher rate tax overall??

cheers.

It makes sense to share your tax credits if one person is on the higher rate and the other isn't. Otherwise I don't think there's any benefit (not an accountant, I could be wrong).


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[John_D]

Grand, thats exactly how it is so, i`ll start the ball rollingso.

Thanks for that!

[JohnH]

You'll pay the same overall, especially if you did a return at the end of the year.

Combining credits and allowances on the higher rate tax payer gives the benefit each month. However your wife's (reduced) salary will be further impacted by paying higher rate tax while you get the saving so you will have to make sure you share!