Subcontractors and Taxation
We have 20 years of experience specialising in providing taxation services to subcontractors in the building industry.
We can prepare your vat and income tax returns in an efficient manner to make sure you meet all of your taxation liabilities from your RCT (relevant contract tax) deductions. Most of all we provide peace of mind to know you will not end up with a huge tax bill at the end of the year and, perhaps, get a refund. If you have employees or if you also sub contract other contractors then we can provide the advice needed to minimise your tax liabilities and meet your tax responsibilities.
Recent Development in Relevant Contract Tax – RCT
If you are a subcontractor in the Building industry then before a principal can pay you, they have to check on ROS (the Revenue Commissioners Website) to see if they have to deduct what is called Relevant contract tax (RCT for short) from your payment.
This can be set at 0% 20% or 35% depending on the state of your tax affairs. Recently the revenue have been implementing more of the Tax Consolidation Act in relation to RCT and linking the tax affairs of Directors to the rate charged on company RCT taxes and of Partners taxation on Partnership. So if you are in a company structure then there is a growing possibly that the tax affairs of the proprietary directors will influence the rate of RCT applied to the company. We encourage subcontractors with no employees or very little material purchases to stay on 20% as it aids with tax planning. However if a subcontractor supplies a lot of materials or has labour costs then it may not be financially viable to operate on anything other than the 0% rate.
We can help bring your company or partnership's taxes up to date and also those of your Directors or partners. No problem is too big – just a challenge we can help you to solve. We have on several occasions prepared 10 years of returns for clients.