Relevant Contracts TAX (RCT)

The new eRCT Compliance System commenced 1st January 2012.
The Relevant Contracts Tax compliance system is undergoing a complete transformation. The traditional collectionof paper based forms, completion of monthly and annual returns, and the familiar C2 card are replaced by the new eRCT compliance system from January 1st 2012.

ROS Registration

All RCT compliance, filing and payments, will be conducted online using the Revenue Online System (ROS). All Principal Contractors must be registered to use the ROS facility.
New RCT Deduction Rates
0% Rate - subcontractors fully tax compliant (previously C2 Authorised)
20% Rate - subcontractors registered for tax and significantly tax compliant.
35% Rate - subcontractors not registered for tax or poor tax ompliance.

Procedures

Step 1: Inputting a "Contract Notification".

The details required for Contract Notification are similar to those required for completing the RCT1 declaration. The

principal will not be able to obtain a Deduction Authorisation required to make a payment to a subcontractor without first

having completed the Contract Notification.

Step 2: Payment Notification.

Prior to making a payment to a subcontractor a Principal must obtain Deduction Authorisation by inputting a Payment

Notification on the eRCT system. This payment notification will include the gross amount payable to the subcontractor.

Step 3: Deduction Authorisation

When a Payment Notification has been made a Deduction Authorisation will automatically issue to the Principal.

The Deduction Authorisation will show the applicaable RCT deduction rate and the amount of RCT to be deducted.

Where a principal makes payment without first obtaining a Deduction Authoriastion the principal will be liable to RCT

at 35% regardless of the deduction status of the subcontractor. In additionto the RCT amount, a penalty up to 5000e

may be payable. Application for the Deduction Authorisation must be made in advance of the payment on ROS online

system.

Step 4: Deduction Summary

The new eRCT system will prepare a prepopulated period end return known as a Deduction Summary. It will be based

on the Deduction Authorisations issued during the period. The deduction summary is deemed to be the return made

by the Principal contractor and the amount of tax shown is the liability unless the principal amends and submits

corrected details by the due date. The due date will be the 23rd day of the monthfollowing the period end. Where a

principal amends the details on the deductionsummary after the date for that period an automatic surcharge of 100e

will apply in addition to the tax due per the amended return.

Our Service

We provide a comprehensive eRCT Tax Agency Service to all Principal Contractors to incorporatethe following:

* Register Relevant Contracts,

* Obtain Payment Authorisation in respect of each subcontractor in advance of payment,

* Review monthly and annual RCT Deduction Summary

* Advise with regard to any balancing payments/refunds,

* Deal with Revenue, subcontractor and lient queries.

 

Vision

Our Vision is to provide a professional payroll service that will support employers to reaffirm the bond of trust with their employees each payday. This bond of trust also exists between  Principals and their Sub-Contractors. Our Vision is to facilitate the on going efficient operation of contractual payments to Sub Contractors.

Mission

Our Mission is to provide an outsourced payroll administrative service to Employers and Relevant Contracts Tax Agency service to Principal Contractors that gives our clients the flexibility to focus their management resources on core business. Our service offering is based on regular and timely communication between our client and our engagement team.

Address: Quayside House Tralee
Phone: 066-712-9579
FAX: +458-4578
E-mail: info@paybond.ie