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RCT Made Easy!

Are you a Principal Contractor obliged to withhold Relevant Contracts Tax (RCT) on payments to your subcontractors? If you are, fulfil your RCT obligations with a few clicks! We are a team of accountants and our app Subby.ie is the only one of its kind in Ireland which allows you to notify contracts and payments directly through your smartphone. This makes RCT easy, even while you are onsite! With years of experience, our staff has the capabilities and expertise to ensure that you operate payments to your subcontractors correctly. Our app ensures this is a smooth process so that the correct net payments are made every time and you have a proper record of tax deductions. Download and register now, and a member of our team will be in touch shortly to complete the onboarding.

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Relevant Contracts Tax (RCT)

RCT is a withholding tax that applies to certain payments by principal contractors to subcontractors in the construction, forestry and meat-processing industries. From 1 January 2012 all RCT compliance, filing and payments, is conducted online using the Revenue Online Service (ROS).

All principal contractors should ensure they are registered to use the ROS facility if not already registered. Subcontractors should also register for ROS in order to access details regarding their RCT transactions.

We can assist you with registering for RCT if you are not registered. If you already have a ROS registration but would like to get your RCT tax affairs in order, contact us and our team will help you get sorted.

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PRINCIPAL CONTRACTOR

You are a principal contractor if you use a subcontractor to carry out activities on behalf of your business. If you are a principal contractor in certain sectors you must make all transactions with Revenue electronically through the Revenue Online Service (ROS).

You should:

• Notify Revenue of all relevant contracts

• Notify Revenue of payment details

• Provide details to the subcontractor of the tax you will be deducting

• Submit a deduction summary, which is a monthly or quarterly return
• Pay Revenue the RCT deducted from payments made to subcontractors.

As a principal contractor, you must decide whether your contract is with an employee or a self-employed person. Deciding what category a worker falls into can be sometimes tricky and you have to avoid incorrectly registering a contract of employment as a relevant contract for RCT since this may result in interest or penalties. This is an area where our experienced staff can help!

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Subcontractors

Subcontractors should also register for ROS in order to access details regarding their RCT transactions. Once the principal contractor notifies Revenue of the contract, Revenue will send you the details including your RCT rate of tax deduction.

The RCT tax rate will depend on your compliance record with Revenue. The three tax rates in the RCT system for subcontractors apply as follows:

• an up-to-date tax compliance record: 0%
• a substantially up-to-date tax compliance record: 20%
• a poor tax compliance record, or for those who have not registered with Revenue: 35%.

We can help you get your tax compliance in order and assist you with obtaining a 0% deduction rate. We can also assist you in claiming any RCT credits that are due to you as a refund or credits against other taxes that you owe Revenue.