Why has my deduction rate changed for RCT ?
Why has my deduction rate changed for RCT ?
If you are a subcontractor in the construction industry, you are subject to a RCT rate of either 0%, 20% or 35% on any payments from principal contractors.
On the 6 April 2019 Revenue ran the first RCT Bulk Rate Review (BRR) of 2019. The BRR assesses the current compliance position of each subcontractors in the eRCT system and a determination of their RCT Deduction rate, of either 0%, 20% or 35%, is then made.
This year, in advance of the BRR, subcontractors were reminded that outstanding VAT Return of Trading Details (RTD) may result in a subcontractor having their rate moved to a higher rate of 20% or 35%, dependant on the level of non-compliance.
Subcontractors who have moved to a higher rate of RCT can check the reasons why such a determination was made using the RCT self -service options in ROS. Once the compliance issues have been resolved, subcontractors can self-review their RCT rate in ROS and receive a new rate determination.
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie