Payment and Tax Clearance Certs

meglome

Not sure if this is the best place for this so mods move it if necessary.

I have a potential issue with getting paid that maybe someone can assist with.

So I invoice for a job I've done with a state organisation. Let say the bill should have been paid in December but at the end of December my tax clearance cert ran out. So as far as I'm concerned the money was due before the tax clearance cert ran out so I should be paid. This organisation are slow payers so only went to actually pay me after the tax clearance cert ran out and are now refusing to pay me as my tax clearance cert is out of date. What is the letter of the law here?

randomer

As far as I am aware tax clearance certs are no longer required. Apparently some public servant set a precendent recently. (Just kidding).

I had a similar issue a few years ago with an educational institution. They paid me late by twenty days or something, and then a few months later I received a letter from them telling me that they had an interest payment for me but they could not release it until they receive a new tax clearance cert, because my previous cert had expired.

As soon as I sent in a new tax clearance cert they paid me. The person I spoke to told me that they couldn't release the payment until the cert was received.

ejmaztec

If all of your tax affairs are up to date, you'd have no problem renewing it. This, if you're not already aware, can be done online at Revenue.ie. You could have a new cert, long before you finish arguing with your debtor.

There's also an option online where you can allow people to check online whether your cert is valid. This would save you having to send it to people.

meglome

I just changed accountants so I'm running behind schedule to get the new tax clearance cert. So I might not have the new cert for a month or more. They should have paid me when I had the old cert so can they refuse to do so now as they were slow paying?

randomer Maybe pulling a Bertie is in order

ejmaztec

Tell your new accountant so that he can get you sorted asap. He'll be only too pleased to do this, as this means that he will be able to send you a bill for his efforts.:D

meglome

ejmaztec wrote: »

Tell your new accountant so that he can get you sorted asap. He'll be only too pleased to do this, as this means that he will be able to send you a bill for his efforts.:D

He's getting there I just don't want to wait at least another month for my money, since they should have already paid it.

Sam Vimes

meglome wrote: »

Not sure if this is the best place for this so mods move it if necessary.

I have a potential issue with getting paid that maybe someone can assist with.

So I invoice for a job I've done with a state organisation. Let say the bill should have been paid in December but at the end of December my tax clearance cert ran out. So as far as I'm concerned the money was due before the tax clearance cert ran out so I should be paid. This organisation are slow payers so only went to actually pay me after the tax clearance cert ran out and are now refusing to pay me as my tax clearance cert is out of date. What is the letter of the law here?

bertie?

i'd say the law is they owe it but can't pay it. the point being they'll still owe it when you get a new one. why can't you get a new tax cert?

Hitchhiker's Guide to...

think this would be better in business management (from consumer issues). moved.

ejmaztec

Commander Vimes wrote: »

bertie?

i'd say the law is they owe it but can't pay it. the point being they'll still owe it when you get a new one. why can't you get a new tax cert?

Because his new accountant is obviously trying to bring his affairs up to date. All due Income Tax/PAYE/Vat etc returns are supposed to be filed, along with all monies due to the Collector. A Tax Clearance cert is only issued then.

bug

The majority of these institutions operate on a purchase order based system.
If you received a purchase order while your tax clearance was in date, then this could be taken as a commitment and once the work is completed it could be put to the organisation not to be holding payment as your Tax Clearance was in date at the time of officially commisioning the work. However if your Tax Clearance was not in order during or on completion of the work and you received no official notification to begin the work they are under no obligation to pay you until you produce a TCC. I think you will find that any institution will cover themselves within their terms and conditions regarding Tax Clearance.

The revenue states that public bodies must only deal in excess of 10K on a contract with an entity which can produce a Tax Clearance certificate. Essentially they are under no obligation to pay you unless you are tax compliant. This is enforced upon them by the revenue to ensure that they are paying out public funds to a company or individual who's Tax affairs are in order.

Is it a Tax Clearance cert or a C47 card?

It should be noted that due to the late payments act you should recieve late interest. I think its 1% of the total contract every day the invoice goes beyond 30 days if your original TCC was in date at the time of payment. I would write or email the body to that effect, if you are sure that your invoice was registered on their system.

Is there an issue with you obtaining a new one? Generally speaking it should only take a week or two for the revenue to supply one, once you are not currently undergoing audit and have published your accounts.

Sam Vimes

ejmaztec wrote: »

Because his new accountant is obviously trying to bring his affairs up to date. All due Income Tax/PAYE/Vat etc returns are supposed to be filed, along with all monies due to the Collector. A Tax Clearance cert is only issued then.

fair enough. Surely there's some provision for people to get paid in the meantime. How's bertie getting paid? He doesn't have one

ejmaztec

Fortunately for him, he's on PAYE.

I don't think that there is a provision for payments on account etc... They don't trust that someone owing tax will ever comply with the tax laws, so draw the line without any exceptions.

mick.fr

Guys read any public tender, if your cert. is expired the day they are going to pay you, they don't pay. You have to provide them with a new certification.
End of story. Get your stuffs sorted to get a new one.

meglome

Thanks for all the help. There was six weeks between the invoice and the cert expiry, so you can see why I think I should have been paid. Legally I'm still not sure what I can do.

I have a feeling they just won't pay me until I get the new cert which I think is unfair.

Maybe I'll just claim I'm tax compliant, it seems to work for some