RCT rate review due this week

Sep 09, 2019

Revenue will carry out a bulk rate review (“BRR”) of all subcontractors in the eRCT system this coming weekend.  In advance of 14 September, subcontractors and agents should address any compliance issues which would cause their deduction rate to increase in this review.  The last such review by Revenue was in April.  Many members told us after the April review that rates were increased, mainly due to a number of outstanding VAT RTDs and some subcontractors had tax withheld at the 35 percent rate on invoices that had been issued.

In a note from Revenue they tell us that:

“Subcontractors or their agents should ensure that they are fully compliant, throughout the previous 3 years, with their pay and file obligations.

Please note that ‘a self-review’ may be carried out in ROS which will identify any compliance issues which need addressing before the BRR is run.   Further information on the rate determination can be found in the Tax and Duty Manual Part 18-02-05.  This includes an Appendix on the RCT self-review screens.

After the BRR is run (on 14/9/19), principal contractors paying subcontractors on rates of 20% or 35% will be obliged to make deductions on any invoice issued.”

You are reminded that the VAT RTD is an annual return and failure to file any outstanding RTDs may result in a higher RCT rate.  We reported on the Revenue RCT reminders and the VAT RTD in February and also on the April BRR.