Information for Principal and Subcontractors in the Construction, Meat Processing and Forestry Sectors

RCT Payment Errors discovered while completing the Form RCT 35

In completing the annual RCT35 return, which was due on 15 February 2008, principals or their advisors may have found instances where a payment was made gross and RCT should have been deducted. This could happen where payments were made without a valid payments card, or in excess of the specified limit on the card.

eBrief No.7/2008 explained that, where such breaches of the regulations are discovered, the principal/advisor should regularise the position by disclosing the complete details to Revenue immediately. Subject to certain conditions, where the failure to deduct RCT is exceptional and it is rectified within 1 month of the filing deadline, Revenue will not seek to impose the tax, interest or tax-geared penalties. A fixed penalty will apply. The disclosure and accompanying payment of the relevant penalty should be sent to the relevant Revenue District.

In response to requests for additional time by various representatives, the opportunity to self-regularise after the RCT35 deadline is being extended this year to 2 months instead of one - i.e. to 15 April 2008.

Full details are available in ebrief No. 10/2007.