Certain married couples with two incomes are doing significantly better than single income couples in the current tax year, thanks to the full individualisation of the standard rate income band.

In last December's Budget, the Minister for Finance Mr McCreevy increased the amount of income taxed at the standard rate for both single taxpayers and dual income couples by 10.3 per cent to €28,000 and €56,000 respectively. But for single income couples the band only increased by 0.5 per cent to €37,000.

These moves have no impact where a married couple earn less than €37,000. But where a couple have two incomes substantially above this level, the benefits can be very significant - to gain most they need to have a joint income of €56,000. How much a couple will gain will depend on how their earnings are split between them.

To get the maximum benefit from the latest individualisation moves a couple could either earn €28,000 each or could have one income of €37,000 and a second income of €19,000. The annual tax bill of such a couple would be €6,840 in 2002 compared with a bill of €11,680 for a single income couple earning €56,000.

The impact of the individualisation moves in Budget 2002 were accentuated by the 30 per cent jump in the PAYE tax credit - because a dual income couple get two PAYE credits.

Single income couples earning over €35,870 also lose out because of the increase in the PRSI ceiling. In Budget 2002 Mr McCreevy made only a token gesture to the stay-at-home spouses with a minimal rise in the home carer credit.

It was increased by just over 1 per cent to €770, compared with increases of between 8.8 per cent and 30 per cent in other tax credits. Mr McCreevy introduced the home carer credit in 2000 when his first individualisation move was roundly attacked.