Professional withholding tax? help

PTL

Hi,
I have just set up a limited company (i know i should of went with sole trader but whats done is done). And i have just finished a contract with a state bodied company. The amount is fairly high and they are withholding professional tax at 20% i think.

Now they said the cheque is waiting there for me once i get my tax clearance certificate.

This is the first contract for the limited company, im not registered for corporation tax so when i rang up they said they cant give me a tax clearance if im not registered for corporation tax.

The company said they would send out the cheque even without the tax clearance number but said there not sure if i can reclaim the money if its done incorrectly.

I am getting an accountant very soon but want to know, should i register for corporation tax, like is it something ill have to do anyway. Is there any disadvantage? and if i tell them to send the cheque anyway while i apply for corporation tax will i be shooting myself in the foot?

Any help at all is appriciated ... im reading like mad at the moment to get my head around business as i never done it in school so am as thick as two planks when it comes to this sort of thing.

kluivert

Dont panic...

When you do work for any state body e.g. Dept of Agri etc they will deduct 20% professional services witholding tax.

You will receive a payment from them + details of the payment + a witholding tax cert. You will take this cert a send it to your local tax district and you will receive a cheque from them for the 20% balance.

This is a common practice in Vets. Where a vet would do work on behalf of the Dept of Agri.

You set you a limited company and never registered for tax?? Go to the revenue and get a TR2 and fill it out for Paye/Vat/Corporation Tax. You need to be registered to get a tax clearance cert, when you are registered just ring the local tax office and request one. It just states that all your taxes are up to date.

I would highly advise you to do the following two things.

Get a good accountant to guide you properly, if he/she doesnt spend time explaining the ins and outs of business and tax then you dont spend your money on them ok.

Second, stop reading!! Business books vary. Same ideas but they will vary to a certain degree instead enroll in evening classes...Enterprise boards run these classes for business owners. Stick with this way of doing business and you'll be flying in no time.

Remember as with everything new you'll experience a learning curve but as time passes by this will disappear and like i said at the start dont panic...

midget lord

Here is a TR2 for you. It downloads in .pdf.

The vast majority of companies are registered for CT purposes, its no big deal and certainly nothing to be worried about. Tax at 12.5% is levied on your business profits if you have any.


If you want to speak about any other issues send me a pm and we can talk over the phone or by email.

karangka

Hi,

I've experienced registering companies and individuals for corporation tax or income tax. I've also dealt with claiming back PSWT (f45) from the Revenue.PM me if you need help.