Revenue has updated its process to automatically offset relevant contracts tax (RCT) credits against tax liabilities as they fall due and tax returns are filed. Upon receipt of the RCT deducted by a principal contractor from a sub-contractor Revenue will automatically credit the subcontractor’s tax record. Automatic RCT offsets apply to employer’s PAYE, income tax, corporation tax, preliminary tax and VAT liabilities.
All automatic system offsets happen no later than seven days from the date the liability becomes due following submission of the relevant tax return. The taxpayer will receive a statement of account to their ROS inbox confirming an offset has been made.
Automatic offset of RCT credits does not apply to liabilities covered by the debt warehousing scheme or a phased payment agreement. Such an offset must be requested via MyEnquiries.