Principal contractors who have engaged a subcontractor on more than one contract at the same time may be interested in Revenue's eBrief No. 26/13. In the eBrief Revenue advises that they propose to amend the RCT Regulations to allow a principal contractor the option of notifying a payment using any valid contract for that subcontractor.

Under the current RCT system where there is more than one contract with the subcontractor a principal is required to make a separate payment notification to Revenue for payment due under each contract. As we reported in Chartered Tax News last November, under a transitional arrangement this requirement was relaxed until 30 June 2013 to assist principals in their transition to the new RCT system.

Following a consultation process Revenue is now proposing to amend the RCT Regulations which will allow a principal contractor the option of notifying a payment to Revenue using any valid contract notified to Revenue for that subcontractor. There will however, continue to be an obligation on the principal to notify each contract to Revenue.

In the interim, principal contractors will have the option of availing of an extension to the transitional arrangement to 31 December 2013.

Further information is set out in eBrief No. 26/13 which is published here.