Non Resident RCT Reclaims

Question.

 

I am a building contractor based in Newry and worked in ROI for several months during the year. I was required to register for Relevant Contracts Tax (RCT) and received notification that my deduction rate was 20%. Therefore the principal contractor deducted 20% RCT from all my payments, can I reclaim the RCT tax deducted from Revenue Commissioners and if so how do I do this?

 

Answer.

It is correct that RCT is operated on all payments the principal contractor has made to you. The fact that you operate your business from the UK, does not change this. The principal contractor making the RCT deductions from your income should provide you with a deduction authorisation.

 

To claim a refund you must complete one of the following forms, available from www.Revenue.ie:

 

• Form IC1 if you are an individual subcontractor;
• Form IC3 if you are a company subcontractor; &
• A questionnaire relating to each contract you have accepted.

 

The questionnaire requests details about the length of the contract, if you used other sub-contractors or employees to fulfil and also the value of the contract. The information you provide should agree with the information that the principal contractor has already provided to the Revenue Commissioners in respect of the contract notification. Any material differences would result in queries and possible delays.

 

The form IC1 or IC3 should be completed and sent to HM Revenue & Customs, they will certify the form, stating you are a resident of the UK. This will also give them an indication of the level of income that should be declared on your UK self-assessment in due course.

 

Once you receive your certified form back from HMRC you should send the original form, along with a copy of the deduction authorisation and the questionnaire to the International Claims Section of Revenue Commissioners based in Nenagh, Co. Tipperary.

 

Also note a certified form IC1 or IC3 will be kept on file by the Revenue Commissioners for 3 years and therefore does not need completed for every claim.

 

The advice above is specific to the facts surrounding the questions posed. Neither PKF-FPM nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.

 

Get in touch with Claire Quigley via email c.quigley@pkffpm.com