New Relevant Contracts Tax (RCT) system to be introduced in 2012
Work is well advanced on developing a new system, which is expected to be introduced on 1 January 2012. It will be subject to a commencement order to be signed by the Minister for Finance.
These changes will affect all principal contractors and subcontractors performing relevant operations in the construction, forestry and meat processing sectors.
If you have ceased as a principal contractor you should contact your local Revenue district immediately to cancel your registration. If however, you are continuing to operate as a subcontractor, please advise your Revenue district that you are applying for cancellation as a principal only.
What changes will be made?
It is expected that the current paper-based RCT system will be replaced on 1 January 2012 by an electronic system, where principal contractors will be obliged to engage with Revenue online (mandatory electronic communication).
From that date, all contacts between a principal (or agent on behalf of the principal) and Revenue will be through an online process. There will be no change to your filing frequency, monthly or quarterly will still apply as appropriate.
What should you do to prepare for these changes?
You must register for the Revenue On-Line Service (ROS), if you have not already done so. If you have a tax advisor/agent/bookkeeper who prepares your RCT returns you should ensure that they are aware of these upcoming changes and that they are registered for ROS.
If you have an in-house RCT software system this will need to be updated to cater for the new RCT system.
Revenue will be conducting information sessions on the new system in the Autumn and will issue invitations to all contractors (principals and subcontractors) who are registered for RCT.
Patrick O Rourke – Partner at OKelly Sutton Kildare Accountants