Girls need some help on the calculations side of ‘if’ I were to give up work after the baby was born. Can I transfer all my tax credits to DH and would his standard cut off rate be increased to €44,400 p.a.? Or do I forgo this option if I voluntarily give up work after the baby is born?
Any advise would be greatly appreciated, really need to start deciding what we will do. Hubbie would prefer me to give work, so would I to a certain degree, all depending on how we would be financially.
Not too sure on the math but you can transfer the credits over to his alright, even if you give up rather than are let go.
NOt much help!
not 100% sure either, but if you check on revenue.ie there should be some useful information there.
Hubbie and I are thinking about the same thing. He earns twice what I do and he said that he'd get my tax credits and between that and children's allowance, we'd be fine. The nearest creche for us is €900 a month and after deductions for mortgage and food and bills etc, I'd have nothing left in my salary. I would rather stay at home and raise bubs, particularly if we have another baby in a couple of years, I'd be working just to pay for the childcare. But I would ideally like to have some money coming from somewhere and not just from my beloved. He says we are a team and he's right, but still, I want to have some money that's mine.
I'll check out revenue and see what the deal is.
id love to give up work but dont think we could afford it
It takes a while to open (on my computer anyway!), but is really helpful. Put in what you earn per year and it tells you what your monthly/weekly take home pay should be.
this is a good website for calculating take home pay
The first €44,400 of your hubbies income would be taxed at 20% - the balance taxed at 41%.
He would also get a tax credit of €3,660.
If he is a PAYE worker he'd also get a PAYE tax credit of €1,830...regardless of whether you worked or not...
Other possible earners if you give up the day job and things get tight.
You can earn up to €10,000 a year tax free by renting out a room in your house...not so useful if you live in a 1 bed flat. Doesn't sound ideal but you could take in say foreign language students for a few weeks at a time. They just have to be given a breakfast, packed lunch and evening meal and are gone all day.
You can earn up to €15,000 a year tax free by minding other peoples kids (max 3 kids) in your house...
Anyway - my point is...there are flexible ways to earn income without having to leave baby at creche.
Going to wait to see after i have had the baby - might be dying to get back to work part time. But its great to know thats in an option.
Thanks guys, i did a lot of research yesterday afternoon and also found that website you suggested montblanc (its great!) and we could live on DH's salary