withholding tax - sole trader

officepres

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I'm a sole trader and I've recently taken on a government contract but when the first payment came through it has a large amount deducted for withholding tax - is this a mistake - is it common - I don't expect to be over the income tax threshold so I wasn't going to be paying any tax probably just the PRSI ( €500 ) - it essentially means that I will be loosing money on the job if I take it on - can I back out of it and return the payment now that a deposit has been paid - or is there a better solution
 
thanks - my god the people who designed revenue.ie should be fired and ros.ie is nothing short of a national disgrace
 
thanks - my god the people who designed revenue.ie should be fired and ros.ie is nothing short of a national disgrace

Funny you should say that, because I'm pretty sure it was largely outsourced to private sector consultants... like you!!
 
I'm a sole trader and I've recently taken on a government contract but when the first payment came through it has a large amount deducted for withholding tax - is this a mistake - is it common - I don't expect to be over the income tax threshold so I wasn't going to be paying any tax probably just the PRSI ( €500 ) - it essentially means that I will be loosing money on the job if I take it on - can I back out of it and return the payment now that a deposit has been paid - or is there a better solution

The income tax threshold of €11,000? So your "large" amount is relative, it's withholding tax so if you don't owe any tax you will get it back.
 
Funny you should say that, because I'm pretty sure it was largely outsourced to private sector consultants... like you!!

LOL - yes I know - that's what I meant - we're not all the same or anything - the ones who built that are clearly not very good at it - anyway the public sector contract process for jobs like that all but ensures that anybody with any real credibility for anything other than the getting of contacts and budget management would never apply - at least I wouldn't anyway - anyway I don't see what's wrong with what I said - the revenue.ie website is very bad and the ros.ie system truly IS something we should be ashamed of. I've been using it for going on ten years now and it's clear to me that that they don't really want anyone using it at all
 
A few years ago, there was a facility for hardship cases (i.e. start-ups !?) to avoid this and receive a refund. I doubt the legislation/Revenue Guidance has changed.
 
A few years ago, there was a facility for hardship cases (i.e. start-ups !?) to avoid this and receive a refund. I doubt the legislation/Revenue Guidance has changed.
Thanks, Yes - there's a sort of aroma of that off some of the information on the website but it's not very clear - they mention in one place that you could offset this against your tax bill for that year ( not much good though if you're a small business fighting cashflow issues - like many sole traders ) while they mention an actual refund but for non nationals - so basically a bit mysterious IMHO - I haven't found anywhere that directly confirms and explains a refund system for Irish people who've had WT deducted - but I got through to a helpful lady on the phone and she advised me roughly along the lines you were referring to - however it does appear to be at the discretion of the applicable local tax office from what I can tell - also I think you need a TCC to avail of this and obviously you can't owe them tax or I suppose they'd be wanting to keep the money unless I suppose if you have a payback agreement with them maybe that might count as "square"
 
Thanks, Yes - there's a sort of aroma of that off some of the information on the website but it's not very clear - they mention in one place that you could offset this against your tax bill for that year ( not much good though if you're a small business fighting cashflow issues - like many sole traders ) while they mention an actual refund but for non nationals - so basically a bit mysterious IMHO - I haven't found anywhere that directly confirms and explains a refund system for Irish people who've had WT deducted - but I got through to a helpful lady on the phone and she advised me roughly along the lines you were referring to - however it does appear to be at the discretion of the applicable local tax office from what I can tell - also I think you need a TCC to avail of this and obviously you can't owe them tax or I suppose they'd be wanting to keep the money unless I suppose if you have a payback agreement with them maybe that might count as "square"

You need chapter 4 of this:
http://www.revenue.ie/en/about/foi/...ains-tax-corporation-tax/part-18/18-01-04.pdf
 
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