Withholding tax from payments

Mike_Eile

About 6 weeks ago I did some consultancy work for a university. The work entailed giving a training session on the area of web design and development. I invoiced the university €300 (no VAT included because training services are not subject to VAT) and have now received a form stating that €60 has been deducted at source. See attached file.

Can anyone tell me if they are within their right to do this? I invoiced them about 6 months ago for the same amount and for the same service and I was paid the full amount.

Any advice would be appreciated.

srsly78

Just nag them about it and they will hand it over. Explain that you handle your own tax affairs and they are making things difficult. Do they know your PPS number? If not they could not have paid tax for you, and have just pocketed it

beeftotheheels

srsly78 wrote: »

Just nag them about it and they will hand it over. Explain that you handle your own tax affairs and they are making things difficult. Do they know your PPS number? If not they could not have paid tax for you, and have just pocketed it

Eh?

It's PSWT and there's nice clear info on the revenue website.

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

srsly78

Ah right it's special coz it's a public body. How come they didn't bill him the first time then? And surely they need pps number to do it properly?

dearg lady

srsly78 wrote: »

Ah right it's special coz it's a public body. How come they didn't bill him the first time then? And surely they need pps number to do it properly?

It could have slipped through the cracks previously. PSWT forms can be filled out without PPS numbers, but I guess it makes things a lot easier for the consultant if they do provide a PPS number.

Sunny Dayz

Make sure you get a pswt cert from your customer for your tax return next year, you set the tax that has been deducted from you against your income tax liability.

Mike_Eile

Sunny Dayz wrote: »

Make sure you get a pswt cert from your customer for your tax return next year, you set the tax that has been deducted from you against your income tax liability.

Thanks for the comments everyone. Much appreciated. I'll take that advice and contact them tomorrow regarding that certificate.

barneystinson

Mike_Eile wrote: »

Sunny Dayz wrote: »

Make sure you get a pswt cert from your customer for your tax return next year, you set the tax that has been deducted from you against your income tax liability.

Thanks for the comments everyone. Much appreciated. I'll take that advice and contact them tomorrow regarding that certificate.

Eh?! You already have it, you attached a .jpg of it above...

Mike_Eile

barneystinson wrote: »

Eh?! You already have it, you attached a .jpg of it above...

You make a fair point. I'm obviously a little confused over everything. It's just I've never come across this issue before.

Thanks again

Tow

Mike_Eile wrote: »

It's just I've never come across this issue before.

It is one of the joys of doing work for the public sector, you have to add a bit extra into your invoice to allow for it.

dearg lady

Tow wrote: »

It is one of the joys of doing work for the public sector, you have to add a bit extra into your invoice to allow for it.

what?! Do people really do this? It just forms part of you overall tax liability, so why on earth would you do this?

smeharg

Tow wrote: »

It is one of the joys of doing work for the public sector, you have to add a bit extra into your invoice to allow for it.

What!!

The withholding tax is paid to Revenue and goes to your preliminary tax account for the year in which it is deducted. You can, under certain circumstances, get an interim refund.

You're not losing anything here.

Tow

smeharg wrote: »

You're not losing anything here.

You are using the use of the money and adding to the costs of doing your accounts.

smeharg

Tow wrote: »

You are using the use of the money and adding to the costs of doing your accounts.

I would imagine for most small businesses this would be negligible.