Rct...

MF87

Hi guys just looking for a bit of advice
I've been an employee for a construction company for the last few years, I've been offered a job from another company now but I hav to go on rct. Just want to know if I have to register for anything or do I just give my details to the company and they sort out the contract between us?
Any advice would be greatly appreciated.

mickdw

If you are employed, stay employed would be my advice.
This new company want you as a subcontractor. They will pay you your invoice amount while returning your vat amount directly to revenue if you are vat registered. You will have to look after your own taxes, retain an accountant most likely and be subject to audit. As a self employed person, you don't get the paye tax credit which is worth maybe 1500 per year.
You will be self employed. No holiday pay, no sick pay, little help from welfare if not earning

MF87

I've heard good and bad things about it, I've been reading up the info online and its a bit hard to follow! I rang the tax office and a woman told me that all I have to do is give my details to the principal contractor and he'll take it from there, it sounds a bit too easy! I would have thought I'd have to register as self employed online myself.

CIARAN_BOYLE

MF87 wrote: »

I've heard good and bad things about it, I've been reading up the info online and its a bit hard to follow! I rang the tax office and a woman told me that all I have to do is give my details to the principal contractor and he'll take it from there, it sounds a bit too easy! I would have thought I'd have to register as self employed online myself.

you ave to look after it and vat yourself they only look after rct.

Lockedout2

mickdw wrote: »

This new company want you as a subcontractor. They will pay you your invoice amount while returning your vat amount directly to revenue if you are vat registered. You will have to look after your own taxes, retain an accountant most likely and be subject to audit.

Subcontractors don't charge Principals VAT!!!

RCT is a withholding tax at 35% if the subcontractor is not registered with Revenue. 20% if registered but not up to date and 0% if all is in order.

Audit by who?

mickdw

Well I did say the contractor will pay the amount less vat.
Look if one is going to be working on this system, you need to be on zero percent. I was just highlighting that the op is going from employed to self employed and trying to highlight all that this entails such as keeping accounts, revenue audit etc.

MF87

If the subcontractor was on 0% tax and everything was in order how long can he stay in that bracket for? Is it until the end of that tax year?

cowlick

MF87 wrote:

Hi guys just looking for a bit of advice I've been an employee for a construction company for the last few years, I've been offered a job from another company now but I hav to go on rct. Just want to know if I have to register for anything or do I just give my details to the company and they sort out the contract between us? Any advice would be greatly appreciated.

It would be more beneficial for you to remain an employee than become a subcontractor as you get the paye credit, have stamps put up for you and your taxes are sorted through the paye system. To become a self employed subbie you would have to register as a self employed individual by completing a form TR1 from your local tax office. If your earnings are more than €37, 500 a year you are obliged to register for VAT also. You as a self employed person are then in charge of your own tax affairs and will have to submit annual tax returns.

cowlick

MF87 wrote:

If the subcontractor was on 0% tax and everything was in order how long can he stay in that bracket for? Is it until the end of that tax year?

I think it is reviewed every six months.