Revenue reminders about RCT
At a recent TALC Audit meeting, Revenue set out that they will issue reminder letters to principal contractors outlining their obligation to correctly operate RCT. Revenue also confirmed that where a taxpayer has outstanding VAT Return of Trading Details, a higher RCT deduction rate might apply.
Revenue said that they will be writing to approximately 200 principal contractors as a reminder of their obligation to correctly operate RCT. The letter will be accompanied by a summary sheet of RCT obligations for principal contractors and will be sent to principal contractors who have had 10 or more unreported payments in the last 12 months.
Revenue carries out a Bulk Rate Review (BRR) of all subcontractors in the eRCT system every April. Revenue have outlined that the BRR and Manual Rate Review will now take a taxpayer’s outstanding VAT Return of Trading Details) into account when determining a rate. Revenue intends to write to approximately 400 contractors, who will be affected by this change, in advance of the April BRR. Read a copy of the letter.