PSWT Specified Person (SP)

Implications for you of eWHT

  • You will continue to be referred to as a (SP).
  • The Designated Withholder (DW), formerly an accountable person, will operate eWHT on their payment to you.
  • PSWT will no longer be operated.
  • The existing flat deduction rate of 20% will no longer apply. It will be replaced by:
    • a Personalised Deduction Rate (PDR) for individuals who provide professional services
    • and
    • a new flat rate of deduction will be applied to SPs who are companies, partnerships or other types of entity.
  • Your DW and Revenue will communicate in real time about the payment due to you and the rate of withholding tax to be applied to your payments.
  • The tax withheld will be credited to your income tax/corporation tax account.
  • You will have the ability to advise Revenue of your other incomes and expenses. While optional, reporting will increase the accuracy of your PDR. The more you engage, the more accurate your PDR will become.

Some certainties

  • eWHT will apply to the same range of SPs as PSWT does now.
  • eWHT will apply to the same range of services as PSWT does now.
  • You will no longer have to apply for interim refunds of tax withheld.
  • Tax agents acting on behalf of SPs will continue to be able to do so in the new regime.

Benefits

  • Integrating tax into how you get paid will increase the accuracy of data, reduce errors and reduce effort for you.
  • Improved accuracy of data will make it easier for you to manage your taxes.
  • Your income tax return will be simpler, we will pre-populate it with the information we have.
  • For individuals, PDR means the rate applied to your payments will be unique to you. This will also be more relevant to your final tax position than the existing flat 20% rate.
  • PDR will help you to pay as you go and reduce or eliminate preliminary tax lump sum payments.
  • You will be able to inform a more accurate PDR by engaging with Revenue.
  • For corporates/partnerships and other entities, a new lower flat rate of deduction will apply. This will remove the burden of the current deduction from gross income at disproportionate rates.  
  • The new regime will help reduce the administrative burden associated with the self-assessment process.
  • You will have real time visibility of the information we have about your income and expenses.

We would like to get your feedback on what we are proposing.

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