Form RCT

nehie

I understand RCT applies only to construction, meatpacking and forestry. Is this true? A friend who works part-time, casually in a local business has been asked to register for RCT even though the business is not in any of those three sectors. Can this be right?

Accountancy

Not sure why he is being asked to register for RCT.
Is he an employee?
What is he working as?

nehie

he's not an employee; he works as a metalworker casually, ie, full-time when there's work, for a few weeks or months, and then not again for months.

Accountancy

So he is not an employee.
How does he invoice them?
What VAT rate does he charge?
Does he only working in a factory or does he work on site for them?

nehie

Thanks for your interest in this. He doesn't invoice them. he's paid a flat rate per day and as it's only €100 per day, VAT doesn't come into it. He works on site: it's a foundry. What do you think?

Accountancy

I sure hope he is registered for Tax on this because if not he could have problems.

I think there is some information missing.

It would depend on what the metal is being used for?
If they are suddenly asking him to register for RCT.
Don't think he should have to because he will never be paying them.
Think there some error in communication.

I think he is being asked to get a C2?

dbran

Hi

As the other poster said, there is information missing here.

In order for RCT to occur there has to be three people involved 1) the customer 2) the principle contractor 3) the subcontractor.

There would only be an exposure to RCT if the foundry is effectively subcontracting a contract out to the metal worker directly from a customer and the contract itself is actually one which is connected with construction, forestry or meatpacking ie it is a "relevant contract".

So if the contract is for say, the instalation of some metal gates on a building site then there could possibly be some RCT for the labour cost incurred and invoiced out by the metal worker to the foundry on the metal working and installation cost involved with that contract.

However if it is just for the run of the mill metal working and there is only the foundry and the metal worker involved in the contract there cant be any RCT because there is no subcontractor relationship between the foundry and metalworker. ie Where is the contract being subcontracted?

I hope this makes sense

As regards VAT he is likely to be still under the threshold if he is only earning 100 per day ie 36500 at maximum.

He need to be registered for taxes and file his tax return every year. There could be some income tax liability if this is not dealt with.

Kind Regards

dbran

nehie

Sorry for the delay in replying. The foundry is an art foundry, so they cast bronzes (statues made by a sculptor for eg). He works on every stage of the casting process, but there might be only one or two pieces a year, so his annual income from it is very low. Last year he simply filed a tax return as a self-employed person (and did not even make enough to be liable for tax) and everything was fine. Now he's being asked to fill in the RCT1 form and doesn't know why. Does anyone have any idea why it might apply to him? It seems fishy to us but we would like a definitive answer. Again, thank you for your interest
Nehie

dbran

Hi

No it does not seem to make sense.

Who is asking that he fill in the RCT1?

Regards


dbran

nehie

the accountant of his employer (who owns the foundry). This same accountant asked him to fill in a C2 form before, and that's definitely for construction isn't it? so we suspect either dodgy dealings or maybe just someone ill-informed.

Do you know of any reason why he can't continue to fill in a tax return annually as a self-employed person, instead of going to all this bother?

dbran

Hi

Methinks someone may just be ill informed.

dbran