Withholding tax

Nicknamed

Hi a very daft question probably!
I’m doing some professional work in addition to my regular job PAYE and apart from the fee the company I worked for gave me a withholding tax certificate.
What do I do with that certificate? Is there any use of that ? I submitted it to revenue via PAYE PORTAL but no reply.
please if anyone can guide a bit.
Thank you

It could be professional services withholding tax. Did you provide this service to some sort of a public body?
https://www.revenue.ie/en/self-assessment-and-self-employment/pswt/index.aspx
You will probably have to do a tax return to get this back, if you are due it back.

It is unrelated to PAYE so they won't be able to help.

wiggle16

If it was an R185 you submit it to Revenue. Then you file a either a Form 12 (usually if its a Form 12 if youre PAYE) or a Form 11. The return will allow you to indicate that you had income from which tax was deducted, and this will be taken into account when computing the return. If youre due a refund of the tax deducted this is how you would get it back.

BarryD2

The company or institution deducting the withholding tax pass the tax onto Revenue and issue you with a Form F45, stating amount deducted etc. You hold onto this and any subsequent ones. When you make a tax return, you quote the total for withholding tax and this is then deducted from any income tax payable or given back to you if no tax liability arises. You keep the F45 forms as proof.

In my experience, it's usually state or public bodies that apply withholding tax.

wiggle16

BarryD2 wrote: »

The company or institution deducting the withholding tax pass the tax onto Revenue and issue you with a Form F45, stating amount deducted etc. You hold onto this and any subsequent ones. When you make a tax return, you quote the total for withholding tax and this is then deducted from any income tax payable or given back to you if no tax liability arises. You keep the F45 as proof.

In my experience, it's usually state or public bodies that apply withholding tax.

F45s usually relate more-so to corporation tax than work done by individuals, but whether it's an F45 or an R185 it needs to be submitted to Revenue.

If it's an F45 keep a copy, but the original has to be sent to Revenue in hard copy. An R185 can be sent in via ROS/MyAccount

Nicknamed

Thank you it’s F45 form. I uploaded it via PAYE and got a new tax credit certificate in a few days without any reply. Does that mean all sorted or I need to do something else ? Thank you

wiggle16

I assume you were doing work for a public body then as Barry pointed out.

Was there any difference between the new tax cert and the old one?

You don't need to do anything right now. Generally, when you have tax withheld at source, it will have been withheld at the higher rate of tax. It may have USC taken into account, but it will likely not have taken PRSI into account.

You should submit the original F45 to Revenue. In the new year, you should file a return of income (form 12 or form 11, whichever applies to you) to declare the income. On this return, you'll also include the amount of tax withheld.

If, when it all comes out in the wash, it turns out you paid too much tax because of the tax withheld on that work, it will be refunded to you. Otherwise, you'll pay the balance of tax owed if the withholding tax was not enough.

The F45 is just a backup document to show that there was already tax deducted on the extra non-PAYE income (treat it like a receipt). You still need to declare the income to Revenue. Revenue will give you credit for the tax withheld on the F45.

Nicknamed

wiggle16 wrote: »

I assume you were doing work for a public body then as Barry pointed out.

Was there any difference between the new tax cert and the old one?

You don't need to do anything right now. Generally, when you have tax withheld at source, it will have been withheld at the higher rate of tax. It may have USC taken into account, but it will likely not have taken PRSI into account.

You should submit the original F45 to Revenue. In the new year, you should file a return of income (form 12 or form 11, whichever applies to you) to declare the income. On this return, you'll also include the amount of tax withheld.

If, when it all comes out in the wash, it turns out you paid too much tax because of the tax withheld on that work, it will be refunded to you. Otherwise, you'll pay the balance of tax owed if the withholding tax was not enough.

The F45 is just a backup document to show that there was already tax deducted on the extra non-PAYE income (treat it like a receipt). You still need to declare the income to Revenue. Revenue will give you credit for the tax withheld on the F45.

Revenue have asked me to submit a return of income for 2019 online . I have never done that before. what should I do ?

relax carry on

Nicknamed wrote: »

Revenue have asked me to submit a return of income for 2019 online . I have never done that before. what should I do ?

https://www.revenue.ie/en/additional-incomes/is-your-extra-income-taxable/index.aspx