Revenue introduced a mandatory electronic RCT system on 1st January 2012. All payments made by Principal Contractors, even if the contract commenced prior to 1 January 2012, must be made under this new system. The current paper based system is replaced by an electronic system. There will no longer be C2 payment cards, RCT 1, RCT 46/ 46A or RCT 47 forms and the annual RCT 35 will no longer be required.
There are three rates under the new system based on the history of compliance of the sub-contractor:
Subcontractors who currently satisfy the C2 card criteria
Subcontractors who have a substantial compliance record
Subcontractors who are unknown to the revenue or have a history of serious non compliance
Subcontractors who are registered for RCT in the old system are automatically registered for RCT in the new system if they are registered for ROS. If not registered, Principals should register immediately.
Operation of the new system
When a principal enters a new contract the revenue must be notified online (Contract Notification). Revenue will acknowledge the notification and advise the rate of tax applicable to the subcontractor.
Immediately before making a...