RELEVANT CONTRACTS TAX (RCT)
RCT applies to payments made by a principal contractor to a subcontractor under a relevant contract (this is a contract to carry out, or supply labour for the performance of relevant operations in the construction, forestry or meat processing industry, though can also apply to other types of industries). RCT applies to both resident and non-resident contractors operating in the construction, forestry or meat processing industry. If your business sub-contracts any type of work, you may have an obligation to withhold RCT from payments to contractors and notify Revenue of all contracts entered into and payments made.
How can we help?
We can assist you with all your RCT queries as part of our full range of services or as a separate service.
The following are a few of the RCT services we provide:
Following on from the increased activity in the construction sector in recent times we have seen a rise in requests for advice on and assistance with the operation of Relevant Contracts Tax (RCT) within their business.
The Relevant Contracts Tax system has been totally overhauled since 1st Jan 2012. Gone are the paper RCTDC forms that some would have been familiar with as the system is now fully electronic. The administrative obligations now placed on principal contractors are onerous and significant penalties can apply where these obligations are not met.
Help To Buy (HTB) Incentive
The HTB incentive has been introduced in Finance Act 2016 to assist first-time buyers with obtaining the deposit required to purchase or self-build a new house or apartment, which they wish to live in as their home. One of the conditions of this relief is that the contract for the purchase or self-build is entered into with a “qualifying contractor”.
Where qualifying residences are being sold, purchasers who have applied for the HTB scheme may only wish to enter into contracts with a qualifying contractor where they are relying on the HTB scheme to purchase the residence. Where you are building qualifying residences, obtaining qualifying contractor status in advance can assist in ensuring contracts can be entered into with HTB applicants in respect of those properties.
We can help get you registered as a relevant contractor for the HTB scheme so that you are ready to enter into contracts with HTB claimants on properties you are developing.
For assistance with your RCT or any other matters please contact a member of our team.