Professional services witholding tax

Hi there,

I'm self employed and received a refund by way of PSWT last year.

I have a net loss for that accounting period and Revenue have assessed me for the refunded amount (instead of nil).

I am wondering if this is correct or have i filled out form 11 incorrectly. It seems I shouldn't have any liability when making a loss.

Thanks for any replies, greatly received.

Are you sure the assessment doesn't denote an overpayment of the tax deducted and now refundable to you? That's what I would have expected.

T McGibney said:

Are you sure the assessment doesn't denote an overpayment of the tax deducted and now refundable to you? That's what I would have expected.

Click to expand...

Thanks for the reply.

I think its the other way around. I already received the refund (during 2014) and the assessment now provides that the refunded amount is now payable.

I don't know how to over-ride the Revenue assessment in form 11.

If it was a 2014 PSWT refund, you wouldn't normally receive it until you filed your 2014 tax return. Are you sure it didn't relate to an earlier year?

T McGibney said:

If it was a 2014 PSWT refund, you wouldn't normally receive it until you filed your 2014 tax return. Are you sure it didn't relate to an earlier year?

Click to expand...

I think you can get an interim refund during the tax year in question if you apply for it. Maybe this is why Revenue are looking for it back now that the return has gone in ... or something like that.

DB74 said:

I think you can get an interim refund during the tax year in question if you apply for it. Maybe this is why Revenue are looking for it back now that the return has gone in ... or something like that.

Click to expand...

You're correct.

Am I obliged to pay it if i've mad a net loss for 2014 though?

Thanks.

It's next to near impossible to say exactly without seeing the figures but if you have no taxable income for 2014 then I don't see how you would have to repay the tax. If you have other taxable income (aside from the Case I loss) things could be different but again without seeing the actual figures it's impossible to say.

I would guess that when you completed the Tax Return for 2014, you only declared the loss and made no reference to the fact that you suffered PSWT during that year.

Even where it is repaid to you during the year by Revenue, you still need to state the tax on the Return.

Before you send in a claim for an interim refund of PSWT, your account with Revenue is basically Nil. When you receive the interim refund your account is then in a minus balance for the amount repaid to you. To balance this out you need to declare on the Tax Return the total PSWT figure - it's on the same section of the Return as where you declare your self-employed income.

If so, ring/write to Revenue and ask them to check what amount of PSWT/F45 certs they hold on file for you for 2014.
They should then amend the assessment to include the PSWT which would correct the imbalance.