Claiming Tax Back (Professional Services Withholding Tax to be precise)

snappieT

Hi all,
First off, I'm certain this is the wrong forum, but I couldn't find anywhere else (not Accountancy, surely?)

I'm doing my tax refund on the PAYE online system. Last year I earned some of my income through professional services for a government agency, and as such, paid professional services withholding tax. I know it is claimable, you can do it on the paper refund form (form 12), but I'm not sure where to do it online. Here are my options:

• Benefit in Kind
• Deposit/SSA Interest Received
• Exempt Income
• Foreign Pensions
• Sch E Non-PAYE Income
• Untaxed Income Arising in the State
• US Dividends
• Canadian Dividends
• Dividends and Distributions
• Fees and Commissions
• Other Foreign Income
• UK Dividends
• Maintenance Payments Received

Anyone got any ideas?

Mont

The above seem to be different types of income you earned during the year - you might be looking at the wrong section - its should be under a reliefs/credits/allowances section like where you would claim your PAYE credit/medical exps etc

Terry

Moved from Ah before the natives start talking about the OP's mother.

snappieT

Mont wrote: »

The above seem to be different types of income you earned during the year - you might be looking at the wrong section - its should be under a reliefs/credits/allowances section like where you would claim your PAYE credit/medical exps etc

Well this is an income I earned, as was taxed on. I don't need more credits, I'm only a student, not earning that much! - I just need the deducted PSWT refunded. The other options I do have for the medical-like stuff are:

• Blind Persons Tax Credit
• Dependent Relative Tax Credit
• Flat Rate Expenses
• Guide Dog Allowance
• Health Expenses
• Permanent Health Insurance
• Rent Tax Credit
• Service Charges Relief

Legend100

just had a look at it myself there on the PAYE ROS and it does not seem to be there as you were saying. Were you on the payroll for the government agency (ie were you getting a payslip or was it contract work) as it would seem you were not given that you paid professional services withholding tax.

This is normally for self assessment individuals and is refundable on the form 11 in October following the tax year. It is strange that there is a place for it on the manual form 12 but it may be your best bet to get the refund as otherwise you will have to go down the registering for income tax route and the annoyances that brings!

snappieT

It was contract work, paid over four payments. I have the certificate of paid PSWT for each of these payments.

Does it perhaps get classed as Sch E. Non-PAYE income?

Thanks to all for their help so far...

Legend100

no it is not schedule E that is the problem for you, employees cannot get PSWT as contract work is for self employed individuals.

Best bet is to file the paper form 12 to get the refund and even then they could come back asking you to register for tax.....do a set of a/cs.......file an annual tax return!!

Some pain in the ***

snappieT

Jaysus, good and complex, isn't it?

Two final questions, if you don't mind...
I also have dividend withholding tax to claim back, should this also be done on the form 12, or should i do it seperately online?
What is a "set of a/cs"? - set of accounts of course, what a pain!

Thanks!

Legend100

Not sure what the best way to go with regards to DWT is as it can be done online but don't know how quick the refund would be or if it would do it automatically.

You may have to pay a bit of PRSI unfortunately on the gross dividend received when you file a from 12 or online but this would entirely depend on your income for the total year

Hope that was of some help

snappieT

OK, that's great, thank you very much. Income for the year is below 10k, so I sure hope I'll be ok wrt PRSI.

Thanks again!

Mr. Incognito

You do not get a refund for PSWT. It's a credit.

As you were a student and not earnign that much it's doubtfull you have enough PAYE to claim the credit against.

DWT is the same, the Dividend is chargeable and your get a credit for the DWT suffered.

Once again, as you are a student your credits will most likely have already reduced your tax to nil.

In addition, yes, you would have to register through self assessment to claim it.

snappieT

You do not get a refund for PSWT. It's a credit.

As you were a student and not earnign that much it's doubtfull you have enough PAYE to claim the credit against.

DWT is the same, the Dividend is chargeable and your get a credit for the DWT suffered.

Once again, as you are a student your credits will most likely have already reduced your tax to nil.

In addition, yes, you would have to register through self assessment to claim it.

I've claimed my dividends back before, and successfully added them as an income (dividends and distributions) for 2006 and 2007, and it looks like my refund is on the way for those already.

Mr. Incognito

What type of dividend income is it?

Kingkong

PSWT is a refundable credit same as RCT. As you are technically self employed for that year you would have to file under the self assesement.

Possibly Form 11 is required. Be sure though to de register from self assessment afterwards though this will stop revenue sending out notices. Your local tax office should be able to help you on this

snappieT

Mr. Incognito wrote: »

What type of dividend income is it?

From ordinary shares in an Irish plc.

Kingkong wrote: »

PSWT is a refundable credit same as RCT. As you are technically self employed for that year you would have to file under the self assesement.

Possibly Form 11 is required. Be sure though to de register from self assessment afterwards though this will stop revenue sending out notices. Your local tax office should be able to help you on this

I called revenue, and they told me just to send in the receipts with a note explaining that this was my only non-PAYE income for the year. I got the feeling she may not have really known what she was doing. Furthermore, since I had income via dividends, this is not technically true. Should I just do it and let them deal with it?

Registering for self assessment seems like a very long route to getting a few hundred euro back, there must be a simpler way for short-term contractors to quickly and easily retrieve their refund.

Kingkong

If Revenue told you that got with it. While techically it may not be 100% correct Revenue often diverge from the strict rules.

You are correct self assesement is more time consuming. Revenue are quite good to deal with most of the time so do what she said write a letter expaining it, inculde the orginal certs (take copies) , refer to the phone call (with who and when).

Send it to your relevant district office and followup on it in about 2 weeks.