PSWT: Who Qualifies and What You Get
Learn how freelancers providing services to public bodies can claim credit for tax withheld at the source.
PSWT is a system where tax is taken directly from payments made to certain professionals by public bodies. This process allows you to use that withheld amount as a credit against your total tax bill.
Who it's for
This scheme applies to freelancers who provide their professional services to public bodies.
What you get
When a public body pays you, they withhold a portion of the payment for tax purposes. You can use the total amount of this withheld tax as a credit to reduce the amount of tax you owe on your overall tax liability.
What it costs you
To claim this credit, you must complete and submit a specific document known as Form F45.
The catch to know
The most important thing to remember is that the credit is not applied automatically. If you fail to file the required form, you will lose the ability to claim that tax credit.
How to apply
- Keep detailed records of all payments received from public bodies.
- Track the specific amount of tax withheld from each payment.
- Complete Form F45 to claim your credit.
- Submit the form to the relevant revenue authorities.