What is a post payment RCT?

The RCT payment service allows principal contractors to notify Revenue of gross payments to be made to subcontractors. We will respond by authorising you to deduct tax, if any, from the payment. This service allows you to submit single or multiple payment notifications.

How much tax do you pay on RCT?

RCT deduction rates The new standard rate for RCT is 20% and is applicable to all registered subcontractors with a good compliance record.

How do I claim my RCT refund?

If you are registered for RCT, you can apply for a refund during the year….To claim a refund of RCT, you must complete:

  1. Form IC1 if you are an individual subcontractor.
  2. Form IC3 if you are a company subcontractor.
  3. RCT questionnaire relating to each contract you have accepted.

Does RCT apply to Labour only?

supply labour only. cannot subcontract the work. are covered under the employer’s insurance. work for only one person or business.

What does C2 registered mean?

A C2 is a certificate of authorisation issued by the tax office to a sub-contractor who applies for and qualifies for one. C2s generally are valid for one tax year. An individual, partnership or company may qualify for a C2. It is a personalised card similar to a credit card.

Can I claim back RCT?

We will automatically credit your tax record with any RCT that the principal has deducted. You can use this RCT credit against other tax due once you have filed your tax returns.

Is RCT self employed?

If you are self-employed in the construction industry, you may be a principal contractor or a subcontractor (or both). RCT applies when a subcontractor is hired by a principal contractor to carry out construction operations under a relevant contract.

Can you claim tax back on RCT?

Who pays RCT tax?

RCT is a withholding tax that applies to certain payments by principal contractors to subcontractors in the construction, forestry and meat-processing industries. The rates of tax are 0%, 20% and 35%.

Is RCT self-employed?

Do subcontractors pay VAT?

Suppliers are no longer required to charge or receive VAT from their main contractor customers. Instead, main contractors effectively charge themselves VAT on subcontractors’ services, and pay the VAT sums that would have been paid to the subcontractor direct to HMRC in their VAT returns.

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