New RCT System - Freezing of subcontractors' rates for first three months in 2012

Principals and subcontractors are reminded that the transitional arrangement freezing subcontractor's rates finishes on 31 March 2012.

Principals need to be aware that subcontractors' rates may change at any time from 1 April 2012 onwards. In-house accounting systems used for RCT purposes will need to have three RCT rates incorporated: 0%, 20% and 35%. Where a subcontractor's rate has changed, Revenue will advise the subcontractor and all principals engaging the subcontractor.

Subcontractors who are at the zero and 20% rate are advised to maintain their compliance record in order to continue at that rate.

Subcontractors are encouraged to register for Revenue's Online Service (ROS). This service is an internet facility which provides customers with a quick and secure facility to file tax returns, pay tax liabilities and access their tax details, 24 hours a day, 7 days a week, 365 days a year. Shortly after 1 April 2012, subcontractors who are registered for ROS may request a review of their RCT rate on ROS.

Subcontractors who are not ROS registered may contact their local Revenue office who will carry out the rate review for them.