Tax Briefing 74 – Renewal of C2 cards with an expiry date of 31 December 2009

Where the expiry date of a C2 is 31st December 2009, Revenue is now reviewing the entitlement of subcontractors to renew their C2 card for 2010. As part of this review, letters have issued to subcontractors who, according to Revenue records, have outstanding liabilities and/or returns. Details have been provided to the subcontractor with the letter.

Subcontractors with outstanding liabilities and/or returns

A new C2 card for 2010 will not issue to subcontractors until their tax affairs have been brought up to date. No additional reminders will issue to subcontractors regarding this matter.

When subcontractors have brought their tax affairs up to date:

Subcontractors who have received a letter should contact their local tax office when their tax affairs are in order. This will ensure the timely issue of C2 cards which will be effective from 1st January 2010.

Principal contractors

Principal contractors are reminded that they must have a valid Relevant Payment Card (RCT 47) before making gross payments to a subcontractor. Where the contract is ongoing at 31 December 2009, the principal contractor can make a bulk application to Revenue for payments cards on Form RCT 46A.

The relevant payment cards for 2010 will not issue to the principal contractor until the valid C2 has been collected by the subcontractor. Relevant Contracts Tax at 35% should be deducted from any payments made to the subcontractor after the 1st January 2010 and before the relevant payment card is received.

Tax Briefing 81/09 – Important end of year information for Relevant Contracts Tax (RCT) Contractors

2010

Principals using Forms RCT 46 or RCT 46A to order relevant payments cards (RCT 47) for new and/or ongoing contracts for next year, are reminded to submit these as soon as possible to ensure timely delivery of the cards. The Form RCT 46A should only be used where an ongoing contract is likely to extend into next year and each subcontractor's current C2 number should be quoted.

Applications for a C2 card

Applications for new C2 cards should be submitted as soon as possible.While every effort is made to process C2 applications as quickly as possible, time must be allowed for the actual production and delivery of the C2 card with digitised photograph and signature. Agents should ensure that the applications are properly completed, and that relevant supporting documentation is included with the application.

Forms RCT 5 (C2 application form) are available online in the RCT Forms Section of the Revenue website. However applicants must also submit a photocard [PC5(a)], which is only available from your local Revenue office.

For information on the renewal of C2 cards with an expiry date of 31 December 2009, please see Revenue eBrief No. 74 of 2009

Tax Briefing 87-Important end of year information for Relevant Contracts Tax Contractors.

Form RCT35 2009 Filing Information

Principal Contractors and their agents are reminded that the filing date for the 2009 RCT 35 is 15^th February 2010. Blank Forms RCT35 for 2009 are now being issued.

Completing the Form RCT35

The specimen version Form RCT35 for year 2009 onwards Form RCT 35 is available on Revenue website.

Your attention is drawn to the notes on Page 1 of the form in relation to completing the form and on how to proceed where errors are discovered while completing it. See also e-Brief No.10/07

You are reminded that:

• Forms that are not completed correctly will be returned for correction, which may result in your return missing the filing deadline.
• The principal must sign the declaration.

If the Principal Contractor did not engage any sub-contractors during the period ended 31 December 2009, “NONE” should be entered in the relevant box on the declaration.

If the Principal Contractor has in fact ceased to be a Principal Contractor, a covering note to that effect should be submitted to the Principal's local Revenue office to avoid unnecessary correspondence in the future.

Filing the Form

Forms RCT 35 can be filed using the Revenue On-Line Service (ROS). Full details are available on www.revenue.ie or by email from roshelp@revenue.ie. As many contractors use ROS for their VAT and PAYE returns, but still file paper RCT returns, please encourage them to use ROS.

Those filing on paper should return the completed form to:

Collector General's Office,
PO Box 354,
Limerick.

RCT 35 Compliance Programme

Revenue's compliance programmes that identify and pursue non-filers include the Form RCT 35. The RCT programme provides for the referral of RCT 35 non-filer offences for criminal prosecution. A number of these cases are currently going before the Courts.

To avoid penalties, a possible tax audit or criminal prosecution, file the RCT35 on time.

Source: Revenue Commissioners. www.revenue.ie. Copyright acknowledged.