Sole trader - "Net earnings" & PWT

LadyBetty

I'm a sole trader and need to provide a statement of my self employed net earnings for the year to Social Welfare.

My client is a Government body and when they pay my invoices, they deduct 20% professional withholding tax (PWT) at source.

Should my "net earnings" figure include or exclude the 20% PWT does anyone know?

Alan Shore

PSWT is a tax collection method.

Your income is the net of VAT total sales less expenses for the year so PSWT is not relevant to your Statement of earnings

LadyBetty

Thank you for the response, I suspected the same but my accountant is saying otherwise, they say I should include the PWST as part of my net earnings. That just doesn't make sense to me -do you know the part of the Tax Acts I could quote to the accountant to support this?

Immy

LadyBetty wrote: »

Thank you for the response, I suspected the same but my accountant is saying otherwise, they say I should include the PWST as part of my net earnings. That just doesn't make sense to me -do you know the part of the Tax Acts I could quote to the accountant to support this?

You should include PWST as part of your net earnings.

That is also what Alan's post says above, I think you have misread it.

draiochtanois

This post has been deleted.

LadyBetty

Aha, got it thanks:o