Professional Services Withholding Tax (PSWT)

di11on

Hi folks,

A quick question about PSWT. If this is deducted from a payment by a client, I understand the amount deducted can be offset against your tax liability. Is this done at annual intervals (say when filing P35) or can it be done monthly (via P30 return)?

Thanks in advance

dogsears

Have a look at this (from the Stickies)

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

di11on

dogsears wrote: »

Have a look at this (from the Stickies)

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

Thanks Dogsears,

From this information, it sounds like one would have to pay PAYE per P30 returns as normal and then claim a refund at the end of the year.

I thought it was possible to credit the PSWT deducted against your PAYE bill and pay less tax to begin with rather than paying TAX+PSWT and then claiming a refund? The leaflet doesn't appear to explain if this is possible or not?

dogsears

Not sure I've understood your situation correctly but I hope this helps:

PSWT can be credited against your income tax bill that arises on your trading profits (if you're self employed) or corporation tax bill (if you trade through a company).

If you're an employer you can't credit it against payments you make to the Revenue of tax you've deducted from employees.

di11on

dogsears wrote: »

Not sure I've understood your situation correctly but I hope this helps:

PSWT can be credited against your income tax bill that arises on your trading profits (if you're self employed) or corporation tax bill (if you trade through a company).

If you're an employer you can't credit it against payments you make to the Revenue of tax you've deducted from employees.

Thanks again.

So if I'm a company director and pay myself a salary though the company (and pay PAYE on this salary) and if my company has no profit, then there is no way to get the PSWT back unless I apply for a refund at the end of the year?

CIARAN_BOYLE

di11on wrote: »

Thanks again.

So if I'm a company director and pay myself a salary though the company (and pay PAYE on this salary) and if my company has no profit, then there is no way to get the PSWT back unless I apply for a refund at the end of the year?

You can claim a refund when you file your CT1

dogsears

Or you can claim an "interim refund" earlier than then - rules for this are in the Revenue leaflet.

di11on

Ok, thanks everyone!