Marriage and civil partnerships
Joint assessment is the option that benefits most couples. Under joint assessment you are chargeable to tax on your combined total income.
This is the option that is applied when you notify us that you are married or in a civil partnership. This does not prevent you from choosing the other options of separate assessment or separate treatment.
If you choose this option, you must inform Revenue before 31 March in the year of assessment.
Assessable spouse or civil partner
The assessable spouse or nominated civil partner is responsible for filing tax returns and paying any tax due.
How to select an assessable spouse or nominated civil partner
You can select which of you is to be the assessable person. You do this by either:
You must do this on or before 31 March in the year you want the selection to apply.
You do not have to make the selection. If no selection is made, the spouse or civil partner with the higher income automatically becomes the assessable spouse or nominated civil partner.
The assessable spouse or nominated civil partner does not change until you and your spouse or civil partner either:
- select the other spouse or civil partner
- select for Separate Assessment or Separate Treatment.
Allocating tax credits, reliefs and rate bands
Joint assessment allows you to allocate (transfer between you) most of your tax credits, reliefs and rate band with your spouse or civil partner. The Tax Rates, Bands and Reliefs that apply to you depends on if one or both of you have an income.
You cannot transfer:
- the Employee Tax Credit
- employment expenses
- the increase in the standard rate band.
If you and your partner both have taxable income, use myAccount to allocate your tax credits and rate band however you wish. You will both receive Tax Credit Certificates (TCCs) showing the allocation of your credits and rate band.
If you do not allocate the tax credits and reliefs in a particular way, all credits and reliefs are given to the assessable spouse.
You cannot claim both the Home Carer Tax Credit and the increased rate band. You should claim whichever is more beneficial based on your own personal circumstances.
Joint assessment where one partner is self-employed
If either you or your partner are self-employed, joint assessment can still apply. You can decide if you wish to pay:
You can do this by how you allocate your credits and rate band. If you choose to pay most of your tax through PAYE, your credits can be transferred to the self-employed person. The Employee Tax Credit and employment expenses cannot be transferred.
Any refunds due at the end of the year will be repaid to each person in proportion to the amount of tax each has paid.
- Example 1
Jennifer and Martin are married and jointly assessed. Jennifer is the assessable spouse.
In 2018 their total income is €71,000. Jennifer’s employment income of €45,000 and Martin's investment income of €26,000.
As they are married the couple are entitled to a standard rate band of €43,550. The first €43,550 of Jennifer’s €45,000 income will be taxed at 20%.
As Martin earns an income, the couple are entitled to an increased standard rate band (equal to the lower of either Martin’s income or €25,550). The first €25,550 of Martin’s €26,000 income will be taxed at 20%.
The remainder of their income is chargeable to income tax at the higher rate. (40%).
They claim two tax credits.
Jennifer and Martin's 2018 Tax Credits
|Married Person or Civil Partner Tax Credit
|Employee PAYE Tax Credit
Jennifer and Martin's 2018 Income Tax liability
|Income taxed @ 20%
|Income taxed @ 40%
|Total Income Tax
Next: Separate assessment