Question about Professional Services Withholding Tax and Form 11E

brophs

I have found the relevant section to include it, but how does it affect my Profit and Loss figures? Should it be included as part of the loss (for example, say I have made a profit of €100 this year but have also paid PSWT of €100. Does this affect my Net Profit/Loss or is it simply a credit that is not included in the Profit/Loss section?

And on that note, can I claim it back as a refund rather than a credit? Thanks in advance.

nompere

It's not a deduction from profit. It is available to produce a refund if that is appropriate.

If you had a fee of €500 from which €100 was deducted for PSWT (wrong percentage I know, but it makes the sums easier) then €500 goes into your turnover. I've seen people exclude the F45s from income, and say their income was €400.

Colts

It is a refundable credit and won't show in your profit and loss account. Your gross income should be included and then deduct the withholding tax in your income tax computation.

brophs

Great. Thanks guys. One last question and then I'll stop pestering you.

As it's a new business I basically made a negligible loss for the year (and have not crossed the threshold at which I would have to pay tax). Having included the PSWT in the correct area of the 11E, how do I go about getting it refunded as opposed to counted as a credit going forward?

Cheers.

nompere

It should come automatically after you file the return.

Colts

It's a refundable credit, therefore the amount will be refunded to you automatically when your return is assessed.

Just make sure you tick the box for the section 397(?) loss claim.

brophs

Cheers for the replies. I had a good look and couldn't find a section 'Loss claim'. Form 11E doesn't have a 397.

Any ideas?

Thanks again. Really appreciate this.

nompere

brophs wrote: »

Cheers for the replies. I had a good look and couldn't find a section 'Loss claim'. Form 11E doesn't have a 397.

Any ideas?

Thanks again. Really appreciate this.

Unless you have other income against which you might claim a loss - which looks unlikely given what you've said - then there's no need to be ticking any boxes.

You've included the PSWT in your return, so Revenue will give you a credit. A credit against a nil liability is an automatic refund.

File the return and the cheque will arrive.

If you registered for ROS you would get the refund very much faster - often within a week of filing the return - and you wouldn't have to send in the F45s. Revenue might still ask for them later.

brophs

Great stuff. I'll send it off in the morning. I had registered for ROS but there was a foul up with passwords/accounts and they promised to send me a new one, but I won't have a lot of time to file by the time they arrive, so I'm just going to do a paper filing this time.

Really appreciate the help, guys. Good to know you lot are taking care of the perpetually clueless.:)

nompere

You have until 16 November to file via ROS; indeed if you don't have a tax liability a surcharge based on a zero liability isn't an issue anyway.