He need not be first to know but you will gain by telling the taxman about your wedding. Clare O'Dea reports

Flowers, church, hotel, honeymoon, tax status - there are so many things to arrange for your wedding and some are more romantic than others.

After you have dusted off the confetti, you should make a call to the tax office and inform them of the date of your marriage, quoting both PPS (personal public service) numbers. One good reason for doing this is to get a tax rebate, if you are due one.

For tax purposes, both partners continue to be treated as two single persons in the year of marriage. If it turns out that the tax you pay as two single persons in that year is greater than the tax that would be payable if you were taxed as a married couple, a refund of the difference can be claimed. Any refund is due only from the date of marriage and will be calculated after the following December 31st.

So a couple getting married this month should inform the taxman about the happy event reasonably soon but will have to wait until next January before claiming a refund.

According to the Revenue Commissioners, a refund of tax for the year of marriage normally only arises where a couple are taxed at different tax rates and one spouse could benefit from the unused standard rate cut-off point or from some of the unused tax credits of the other spouse.

When you begin the second calendar year of marriage you have three taxation methods to choose from. You can either choose joint assessment, separate assessment or assessment as a single person, also known, confusingly enough, as separate treatment. You can chose the taxation option which is best suited to your circumstances.

It's not a great dilemma really as joint and separate assessment are effectively the same thing and taxation as a single person is rarely a better deal.

Remember you may not have the same tax office as your spouse. The location of your tax office depends on your employer's registered address, which is shown on all tax office correspondence. For administrative purposes, the main details for a married couple on joint assessment are usually held in the assessable spouse's tax office.

How does joint assessment work?

Joint assessment is usually the most favourable basis of assessment for a married couple. It is automatically given by the tax office once you have let them know about the marriage, but that doesn't prevent you from choosing one of the other two options.

Under joint assessment, the tax credits and standard rate cut-off point can be allocated between spouses to best suit their circumstances. If only one spouse has taxable income, all tax credits and the standard rate cut-off point will be given to him or her.

If both spouses have taxable income, they can decide which spouse is to be the assessable spouse and request the tax office to allocate the tax credits and standard rate cut-off point in whatever way they wish. PAYE tax credit, employment expenses and the basic standard rate cut-off point are non-transferable.

If the couple does not nominate the assessable spouse themselves, the Revenue will treat the spouse with the highest income as the assessable spouse.

The flexibility that joint assessment affords can be very convenient where one spouse pays tax under PAYE and the other pays tax under the self-assessment system. You can let your circumstances dictate whether most of the tax should be paid under PAYE or in a lump sum on assessment.

What is separate assessment?

Under Separate Assessment, your tax affairs are independent of those your spouse. The following tax credits are divided equally between you:

• married tax credit;

• age tax credit;

• blind persons' tax credit;

• incapacitated child tax credit.

The balance of the tax credits are given to each spouse in proportion to the cost borne by each individual. The PAYE tax credit and expenses, if any, are allocated to the appropriate spouse. Any other credits which are unused by one spouse may be claimed by the other spouse.

Any unused tax credits and standard-rate cut-off point up to €37,000 (other than PAYE credit and employment expenses) can be transferred to the other spouse, but only at the end of the tax year. Overall, the amount of tax payable under separate assessment is the same as that payable under joint assessment.

Separate assessment must be claimed in writing in the period beginning three months before and three months after the tax year. Each spouse may complete a separate return of their own income. However, a joint return is acceptable as long as it includes the income of both spouses.

Assessment as a single person (separate treatment):

This must also be claimed in writing. It should not be confused with separate assessment. Under assessment as a single person, each person is treated as a single person for tax purposes.

This means both spouses are taxed on their own income and get the tax credits and standard rate cut-off point due to a single person. Each person pays their own tax and completes their own tax return.

This basis of this assessment can be unfavourable in some circumstances because you cannot transfer unused tax credits or standard rate cut-off point. Home carer's tax credit cannot be claimed.

A Revenue spokeswoman said it was difficult to see where single treatment would benefit any couple. Perhaps it is there for people who still like to keep their financial affairs private.

Standard rate cut-off point:

This mouthful was introduced last year with tax credits when the tax-free allowance system was done away with. It represents the amount of income which will be taxed at the standard rate of 20 per cent.

The standard rate cut-off point for married couples in 2002 is €37,000. This is increased by €1 for every €1 of spouses income up to a maximum €19,000 for dual income couples.

This increase is not transferable between spouses.

Tax credits are deducted from your tax liability so the more you have of them the better.

The home carer allowance applies to married couples where one spouse works at home caring for a child, elderly or dependent person.

For this tax year, the carer is also allowed to earn up to €4,000 and still keep the €770 credit. Alternatively, you are entitled to forego the carer's allowance but have the potential €56,000 tax band available to you as a married couple. You will be granted the option that is more beneficial to you.

The maximum that can be claimed by any one spouse is €37,000 and this is where the €19,000 limit comes in. If one spouse earns €45,000 and the other earns €10,000, the band at which you are taxed at the standard rate (cut-off point) is limited to €47,000 (€37,000 + €10,000).

On the other side of the coin, the arrangements for separated or divorced couples are also quite flexible.

Where a couple are legally separated or divorced and a maintenance order is in place, there are two ways to deal with the tax situation.

If they both opt to be assessed as single, the person paying maintenance can claim a tax deduction on the amount while the person in receipt of maintenance is chargeable for tax on the amount.

Alternatively, the couple can continue to be jointly assessed under certain conditions. This must be applied for jointly in writing.

Under this arrangement, the person paying the maintenance does not claim a tax deduction while the person receiving the payment is not chargeable for the amount.