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withholding tax from payments for professional service

  • 27-05-2009 7:52pm
    #1
    Closed Accounts Posts: 14


    Hello, am very confused here with the above.
    I joined a private company 8 months ago and have been paying my tax via PAYE.
    last month i received a certificate of withholding tax from payments for professional services, and received another cert today. i really couldn't make out what they are as the 'amount of relevant payment' in the cert does not look like my salary. Also does it mean i have to pay additional tax on top of my PAYE? will it be deducted automatically from my salary?
    I'm just wondering if i need to do anything or is there anyone i can contact to clarify this . i rang revenue office & they say they don't have a record of those on their computer, they've asked me to contact the 'name of accountable person' which is at the bottom of the cert. Yes, there is a name there and he's it's written ' Interim Chief Executive(HSE)' how do i find this person's contact details?
    any advice would be greatly appreciated.Thanks!


Comments

  • Registered Users, Registered Users 2 Posts: 59,702 ✭✭✭✭namenotavailablE


    Did you act as a 'freelance consultant' for the organisation that gave you the certificate?
    Normally, withholding tax is deducted from fees paid to contractor/ consultants for services provided. It wouldn't typically apply to employees.

    You probably need to contact your payroll office for more information about the reason for receiving the certificate- it might be an error or there may be a valid reason for it.


  • Registered Users, Registered Users 2 Posts: 881 ✭✭✭censuspro


    It appears as though your not on PAYE. Did you get a written contract, everything should be outlined in that. Or hire an accountant or tax consultant.


  • Registered Users, Registered Users 2 Posts: 393 ✭✭CheltenhamJ


    Yes agreed , you do not appear to be an employee , the form received is an F45 annd is important to keep , essentially as good as money as difficult to get a duplicate issued. Interim cliams (ie before tax yr end) can be difficult and only allowed in certain circumstances. Hope it helps


  • Closed Accounts Posts: 14 questiongirl


    Hello all, many thanks for replying & helping me to solve the 'mystery' . thinking back of what namenotavail said, i think i have an idea what's going on now. my employer has been using my name for a contract for an organisation, the organisation will pay my employer and not me. That's most likely what this is all about. That's why i don't see the money paid into my account, hence don't understand how they 'deduct ' the money cos there was no money being paid to me. will check with my employer tomorrow.Hmm... thinking about it now...will this affect my tax credit/tax band?


  • Closed Accounts Posts: 2,204 ✭✭✭bug


    Hello all, many thanks for replying & helping me to solve the 'mystery' . thinking back of what namenotavail said, i think i have an idea what's going on now. my employer has been using my name for a contract for an organisation, the organisation will pay my employer and not me. That's most likely what this is all about. That's why i don't see the money paid into my account, hence don't understand how they 'deduct ' the money cos there was no money being paid to me. will check with my employer tomorrow.Hmm... thinking about it now...will this affect my tax credit/tax band?

    see http://www.revenue.ie/en/tax/pswt/leaflets/it19.html

    PSWT is deducted at the standard rate of income tax if you are consulting (or other work) see above link, for a public body usually.

    What I cant understand is why your employer is using you as a contract name if you are an employee of that organisation?

    I had thought PSWT was only deducted on direct payments to a person that performs under the remit at the link above by a public body.

    If you are not being paid for this job outside of your usual payroll salary - why are they deducting PSWT?


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  • Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    All sounds very strange- I'd have a stern chat with my employer and ask what the hell is going on.

    It's terrible practice and a bit dodgy to be putting your employee down as the contractor as you may end carrying the can if things go wrong.


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