Credit for RCT deducted – where does it go ?
If you are subbie in the building industry and RCT has been stopped on any payments due from principal contractor.
The following will happen to any RCT deducted by revenue on an automatic basis:
Revenue will automatically credit your tax record with any Relevant Contracts Tax (RCT) that the principal has deducted. Once a tax return is filed and the liability falls due, the revenue system will automatically offset RCT credits against these liabilities.
Please note the automatic offsets procedures are as follows:
1. Employers’ Pay As You Earn (PAYE) deductions – Once the monthly return is filed, revenue will automatically offset your RCT credit against the declared liability.
2. Income Tax/Corporation Tax (CT) – Once the annual Form 11/CT 1 is filed, the RCT system will automatically offset your RCT credit against the declared liability. If you require the offset to go against a preliminary tax liability, you must submit a preliminary tax declaration. Once the declaration is submitted, revenue will automatically offset your RCT credit against the liability.
3. Value-Added Tax (VAT) – Once the VAT 3 return is filed, revenue will automatically offset your RCT credit against the declared liability.