Reduced frequency of tax returns and payments

Reductions in the frequency of PAYE/PRSI and VAT tax returns and payments for smaller businesses will again be extended to eligible businesses from 1 January 2011. Visit revenue.ie for full details.

Tax Refunds after Marraige

If the tax you pay as two single people is greater than the tax payable if you were taxed as a married couple, you can claim the difference. If you were married in 2009, any tax refund due to you will be calculated after 31 December 2009. If you get married in 2010, any tax refund due to you will be calculated after 31 December 2010. The standard rate cut-off point for married couples is €45,400 in 2010 (the same rate applied in 2009). This amount is taxed at 20% and the balance is taxed at 41%. Where both spouses have income, this standard rate cut-off point can be increased by the lower of the following:

-€27,400 in 2010 (the same rate applied in 2009) or
-The amount of the income of the spouse with the smaller income.

Example of Taxation of a Married Couple:

Thomas Income €48,000 + Donna's Income €24,000 = €72,000
Standard rate band
Thomas €45,400 x 20%   = €9,080
2,600 x 41%                   = €1,066
Donna €24,000 x 20%      = €4,800
                                     = €14,946

Tax Credits Married Tax Credit  €3,660
PAYE Tax Credit x 2                  €3,660
                                             = €7,320

Tax Payable €14,946 - €7,320 = €7,626

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How is my Tax Calculated?

Patrick is single and earns €28,000 a year. He receives his notice of determination of tax credits and standard rate cut-off point from Revenue.

Patricks’s tax credits are listed on the notice as:
Single Person Tax Credit = €1,830
Employee Tax Credit = €1,830
Tax credit total = €3,660

The standard rate cut-off point for a single person is €36,400. As a result of Patrick’s income being below the cut-off point, all of his income is taxed at the standard rate, (20%), to give his gross tax.

€28,000 x 20% = €5,600 gross tax.
The total tax credits are deducted from gross tax to give the tax that is payable:

€5,600 - €3,660 = €1,940

Patrick is also liable to pay the income levy at 2% of his gross income:
€28,000 x 2% = €560

The total amount deducted from his income is:
€1,940 (income tax) + €560 (income levy) = €2,500

This is a basic calculation and does not include deductions for PRSI.

Taxation of Married People

If you get married, both you and your spouse continue to be treated as single people for tax purposes in that year. If, however, the tax you pay as two single people is greater than the tax that would be payable if you were taxed as a married couple, you can claim the difference. (In other words, you can claim a tax refund). Refunds are only due from the date of marriage and will be calculated after the following 31 December. So for example, if you were married in 2008, any tax refund due to you will be calculated after 31 December 2008. If you get married in 2009, any tax refund due to you will be calculated after 31 December 2009.

Refunds are normally only due where a couple are taxed at different rates and one spouse could benefit from the unused standard rate cut-off point or for some of the unused tax credits of the other spouse.

When you get married therefore, it is important to advise the tax office of the date of your marriage. You will also need to quote your own and your spouse's Personal Public Service (PPS) Number.

For the years following your marriage, there are three options for taxation of married people. All of the options and the outcomes of choosing them are outlined below. The three options are:

-Assessment as a single person (i.e. you are both still taxed as single people)
-Separate assessment
-Joint assessment/aggregation.