What are the penalites for late payments to subbies under RCT ?
If you make a payment for a relevant contract to a subcontractor, other than as shown on a deduction authorisation, this is an unreported payment.
If you make an unreported payment, you are liable for a penalty.
The following penalties apply to each unreported payment and is dependent on the compliance record of the subbie.
| Subcontractor status | Penalty |
|---|---|
| 0% deduction rate | 3% of the relevant payment |
| 20% deduction rate | 10% of the relevant payment |
| 35% deduction rate | 20% of the relevant payment |
| Unknown | 35% of the relevant payment |
If you submit details of a payment that has not been reported correctly, you will receive a letter in your Revenue Online Service (ROS) inbox.
This letter will inform you of the penalty you are liable to pay. You can pay by using the RCT Penalty Payment option on ROS
So the important takeaway from this is make sure that all payments to subbies are put through the RCT system otherwise it could be costly
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie