tax advice needed - self employment

chirogirl

Hi,

Really need some advice regarding my work and tax situation. I'm self employed, but the bulk of my work load is for an organisation that tax me at source. I've recently been landed with hefty tax bills for 2010 and 2011. Even though Im taxed at source am I still required to pay these? I kinda feel I'm being double taxed? For every job I undertake I receive a F45 statement and tax is being deducted.
Any advice appreciated. Thanks
Also, can anyone recommend a tax accoutant??

Alan Shore

Your payments are subject to 20% professional services withholding tax. When you prepare your tax returns you compute income tax, PRSI & USC and then get a credit for the tax withheld. Depending on the amount of work that you do that is subject to PSWT you should have a good proportion of the final bill paid. Were your returns filed by the deadline today.

seco

I am a practicing accountant. pm your contact details to me and we can discuss further.

kennyb3

I'm very surprised your ending up with hefty tax bills, as with the F45 PSWT you are paying 20% of all your F45 income in the form of tax up front.

You then get to deduct expenses which if in any way significant mean you shouldn't have that much more or anything left to pay.

Are you sure your accountant is deducting this withholding tax as a credit on your tax return? Or do you just have little to/no expenses?

The other possibility is that your PAYE employer is giving you too much in terms of credit. It might also be advisable to hold back your personal credit for your self employment income thus effectively making a contribution week to week and lowering your lump sum bill due when you file your tax return.

Our firm is based in D9 if you want to PM me for details.

2ndcoming

Ensure that you include the full amount of tax deducted on the F45s (i.e. total for the year) at the section 'Credit for Professional Services Withholding Tax ' (Line 116, Form 11E 2011).

If you have omitted this information you'll have to send your claim in separately along with all the F45s.

It depends on the level of income though. If you are due to pay most of it at the higher rate, there may be up to 32% extra due on the income as only 20% has been deducted at source.

kennyb3

2ndcoming wrote: »

It depends on the level of income though. If you are due to pay most of it at the higher rate, there may be up to 32% extra due on the income as only 20% has been deducted at source.

Again though as i've said above you'd expect expenses to cover a good bit of this. Very few business with expenses not covering at least 15% of income - even in a profession with no resale purchases. There ll still be insurance, accountancy fees, light & heat, telephone costs, motor expenses etc etc

chirogirl

Thanks for your replies.
I fill in my own return on the booklet that is sent out during the Spring. However, the booklet I received this year was different to last years i.e only a couple of pages! I went into the revenue office in town and explained this, but they Guy I spoke to said it had been condensed for my needs. I accepted this , Though there was no section to fill in 'tax deduction'. Hence, why I think I received the tax bill.
I was onto revenue again this week, theyve requested all my F45s and are looking to resolve the problem. I'm finding it very stressful!