Posted: Wed Dec 20, 2017 12:22pm
Thanks - just come back in from the cold, so I'm doing this whilst having a brew.
So you'll be doing your first tax return next April-June for calendar year 2017. You have to do this for your first year of residence even if no tax is due.
Income:
Patrick income £170.96 x 52 @ 1.2 = €10668
Mrs P income £147.31 x 52 @ 1.2 = €9192
Note 1: I'm just using 1.20 as a notional exchange rate for now.
Note 2: check your bank account for details - it's the date that pensions hit the bank account that matters.
Note 3: again check your account for actual amounts received, as I assume there will have been a slight increase from April onwards.
Note 4: The military pension only comes into the calculation here if you've got tax to pay, as it only affects the rate at which the tax is calculated.
Allowances:
Personal:
Both aged between 65 & 75, so personal allowance €6,700
Special:
Both receive earnings related income, so there is an extra €2,000 allowance - assuming this is still the case for 2017 returns.
Earnings related Personal Allowance:
If earnings related income is less than €11,250, the allowance is €3,700.
If earnings related income is between €11,250 and 14,450, the allowance is:
€3,700 less 1.15625 x (earnings related income - €11,250)
Over €14,450 you don't get anything
On these criteria, you both qualify for the full €3,700
Calculation Patrick:
Earnings related income €10668
Less €2000 allowance for having earnings = €8668
Less €3700 earnings related allowance = Taxable pre apply personal allowance €4968
Less €6700 personal allowance = Unused allowance of €1732
Savings related income less than this, so no tax due.
Similarly, no tax due by Mrs P