ePSWT implementation updated guidance

Tax and Duty manual, Part 18-01-05A - ePSWT (electronic Professional Services Withholding Tax) implementation guidance was recently updated in advance of the implementation of ePSWT on 1 July 2021. The updates include information for “PAYE only specified persons”. Chartered Accountants Ireland has been in contact with Revenue on this issue which mainly impacts GP practices. 

The issue concerns the established practice of the Form F45s issuing in the name of an employee doctor of a GP practice and how this practice will be dealt with under the new ePSWT system so that the chargeable person has full access to tax withheld at source. Chartered Accountants Ireland will host a webinar with Revenue on Monday, 5 July on the new ePSWT system addressing this and other aspects of ePSWT.

ePSWT implementation guidance, Part 18-01-05A includes the following updates:

• Paragraph 1 - updated to reference that payments to a charity that are exempt from tax are excluded from PSWT
• Paragraph 3.2 - updated to advise that the ePSWT links are accessible in ROS from 24 June (in respect of Payment Notifications (PNs) from 1 July)
• Paragraphs 3.3 and 10 - updated with information on the planned update to myAccount
• Paragraph 4.2.1 - updated with information on an issue with ‘old style' VAT numbers and the inability to use CHY or T-numbers
• Paragraph 5.1 - information added on valid symbols allowed in the CSV and/or ROS
• Paragraph 11 - updated with regard to ‘PAYE only’ specified persons.

Chartered Accountants Ireland understands that it is established practice for the HSE to appoint a treating doctor to each medical cardholder. In some cases, this may result in an employee of a GP practice being named as the specified person on the Form F45 issued from the HSE. The payments from the HSE for services provided to medical cardholders are paid to the GP practice and the GP practice is chargeable on this income for tax purposes. 

Revenue is currently considering how this practice may be reflected on the ePSWT system in a manner which will allow the chargeable person information and credit for tax withheld at source on payments from the HSE. This and more topics will be covered at the Revenue’s webinar in conjunction with Chartered Accountants Ireland on 5 July. 

You can book onto the ePSWT System Presentation through the Chartered Accountants Ireland website.