Taxed at 35% for Self Employed

R

roker

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My son is getting very depressed over his tax issue. He has just obtained a job and you would think that this would be good, but he is working on a self employed basis and the tax taken off his money is 35% which does not leave him enough to live on. He knows that he can claim back at the end of the year, but this is like giving the government a loan when he needs it to live off. Is there any way around this? Is this normal?
 
Hi Roker

I think you are referring to the RCT system.
Is he a contractor?

The new RCT rules state that 35% is deducted off unregistered subcontractors.
The rate of deduction for regsitered contractors is 20%

And there is a 0% rate of deduction for certain traders who revenue are satisfied will meet their tax obligations.

If he is not registered with Revenue - this would be the first step in reducing the deduction to 20%


www.accountantonline.ie
 
He has tried contacting the tax office on this point without success. Seems he will be better off on the dole again.
 
No, he cannot claim it from the tax office on a monthly basis anymore.

Roker, Has he enquired as to why tax has been deducted at 35%? What has he been told?
 
Only for unregistered contractors
See my post above.

He needs to register with Revenue. Has he done this?
 
Tomorrow: Thanks for the link. He has written the revenue but not registered, I would have thought that they would send the correct documentation.
 
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