Relevant Contracts Tax - New Regulations Made

The Revenue Commissioners have recently made new RCT Regulations entitled Income Tax (Relevant Contracts) (Amendment) Regulations 2008 (S.I. No. 80 of 2008) which amend the Income Tax (Relevant Contracts) Regulations 2000 (S.I. No. 71 of 2000). The new regulations come into effect on 1 April 2008.

The new regulations stem from a commitment by the Social Partners in Towards 2016 to strengthen the RCT system by revising the RCT1 declaration form and by putting in place new procedures to help ensure that workers are correctly classified as either employees or self-employed subcontractors. A substantially revised RCT1 Form comes into effect in tandem with the regulations.

The new regulations require principals to deliver RCT1 declarations to Revenue, in certain circumstances and within specified time limits. They also set out the circumstances where a declaration need not be made.

Full details of the changes are contained in the new regulations which can be accessed on www.revenue.ie.