Under the new RCT system which came into operation on 1 January, Revenue implemented a number of transitional measures. As part of these measures subcontractor's rates were frozen for the first three months in 2012. This transitional arrangement finished on 31 March 2012 and therefore, from 1 April 2012 onwards subcontractors’ rates will no longer be frozen and may change at any time.

In eBrief No. 14/12 Revenue advises that in-house accounting systems used for RCT purposes will need to have three RCT rates incorporated: 0%, 20% and 35%. Where a subcontractor's rate has changed, Revenue will advise the subcontractor and all principals engaging the subcontractor. Subcontractors are encouraged to register for Revenue's Online Service (ROS) and those not ROS registered may contact their local Revenue office who will carry out the rate review for them.

Further details are set out in Revenue's eBrief No. 14/12 which is available on the Revenue website www.revenue.ie