Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

What is RCt Tax for a self employed meat processor.

Options
  • 01-05-2012 2:56pm
    #1
    kinders7
    Closed Accounts Posts: 1 ✭


    Hi,
    Just wondering if anyone can give some clarity on the RCT tax. My partner is a Boner in a meat factory and has been for years. He is recently in a new factory and has been informed he has to pay RCT tax. Why now? Who pays it, him or his employer. We have asked the accountant but things are still very confusing. Is this a new form of tax. Any kind of information or clarity on this would be greatly appreciated.
    Tagged:


Comments

  • Options
    #2
    Shane732
    Moderators, Business & Finance Moderators Posts: 4,991 Mod ✭✭✭✭Shane732


    kinders7 wrote: »
    Hi,
    Just wondering if anyone can give some clarity on the RCT tax. My partner is a Boner in a meat factory and has been for years. He is recently in a new factory and has been informed he has to pay RCT tax. Why now? Who pays it, him or his employer. We have asked the accountant but things are still very confusing. Is this a new form of tax. Any kind of information or clarity on this would be greatly appreciated.

    RCT isn't a new tax at all, it's been around for a long time.

    Firstly to clear one thing up in relation to your post. You asked the question if your partner or his employer has to pay it - If your partner is within the scope of RCT the relationship between him and the factory is not that of an employer employee relationship. In other words, your partner must be considered to be self employed.

    RCT is a form of withholding tax. There are numerous types of withholding taxes such as PAYE/DIRT/DWT etc... RCT is just another one.

    Essentially if the principal (the factory) is not given the authority to pay your partner gross then they must deduct RCT tax on payments made to him. When you partner files his Income Tax return he will receive credit for the RCT deducted and a refund of the RCT if his final tax liability is lower than the RCT deducted.

    I'm sure your partner is best placed to know whether the activity he carries out is within RCTable meat processing activities.

    More information can be found here:

    http://www.revenue.ie/en/tax/rct/meat-processing-operations.html

    and

    http://www.revenue.ie/en/tax/rct/index.html


Advertisement