The position is that each spouse is treated individually throughout the year by their employer-pension provider when the income levy is applied. According to Revenue records, the person in question is aged over 65; therefore the €20,000 per annum (€385 per week) exemption is applied to each pay period. On that basis, no refund can be made during the year.
After the end of the tax year the person can claim a refund of the income levy from the Revenue Commissioners. He will be due a full refund of the levy provided the combined income of the couple (excluding any social welfare payments) is less than €40,000, double the single threshold.
In the case of the exemption for those aged over 65 who are married, the legislation provides for a refund after the end of the year because it would not be possible for the Revenue Commissioners, an employer or pension provider to know during the course of the year whether or not all of the requirements necessary for the exemption to apply have been met. This would include knowing, for example, if the person or their spouse had turned 65 in the tax year, if they had other income sources and the aggregate income from these sources, if there had been a change in employment circumstances or if there had been a change in marital status during the year.