Sole trader Engineer - Working for construction company

mickdw

Hi,
I know there is a tax forum but people here in same field will know the specific answer.
Ive been working self employed for a few years, mostly one off housing etc (working for private people, not businesses). I also work for retailers etc in an engineering capacity. Im registered for tax and just invoice clients, get paid and make a tax return each year. Not VAT registered as turnover is small.

Now I have some work to do for a construction company. Will they require RCT forms to be filled and perhaps retain 35% of invoice figure as I dont have a C2? Anyone know the answer?

muffler

You can apply to the Revenue Commissioners for a tax clearance cert which may well overcome any issues that arise.

wirehairmax

It depends on what you are invoicing the contractor for and what type of service you are providing. If it is a professional service you may not be subject to RCT as you may not be classed as a sub-contractor. The main contractor would merely discharge your invoice as normal. If you are to be classed as a sub-contractor RCT would be appropriate at 35%. Its no big deal if you can afford to wait until the end of the year to claim back your taxes.
If you see a situation where you would be doing regular work for the M.C. then you could apply for a C2. Depends on your tax situation really. Applying for a C2 is not that difficult if you have a M.C who will write you a cover letter to say they have regular work for you and your tax affairs are in order.
I would say to you to seek an accountants advice and go from there

Supertech

+1 on the above.

I've been in a similar position myself - self-employed Arch.Tech carrying out occasional works for a building contractor. Contractor wanted me to apply for C2 which I didn't believe was necessary, as I was providing a professional service to him rather than sub-contracting.

Asked my accountant he advised invoice as normal (as for a private client)

As has been said above, you're probably better off to check with your own accountant as well,as he'll be the one doing your books at the end of the year.

wirehairmax

Mickdw. PM sent