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Subbing out/rct

  • 12-03-2017 9:35pm
    #1
    shugy
    Banned (with Prison Access) Posts: 409 ✭✭


    Small question about subbing out work and rct.

    If I'm a sole trader and I priced plastering and painting job for 5k(plastering worth 3.5k and painting 1.5k) and I subbed out the painting for 1.5k to other painter, do I still have to pay tax on the 1.5k because I'm the one who subbed it out or do I just pay revenue the rct on it and the other trademan the rest?


Comments

  • #2
    davindub
    Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    If you are asking as part of your business, you should run it by an accountant.

    But in general:

    RCT is irrelevant to your tax adjusted profits. You pay income tax on tax adjusted profits rather than total income.


  • #3
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    shugy wrote: »
    Small question about subbing out work and rct.

    If I'm a sole trader and I priced plastering and painting job for 5k(plastering worth 3.5k and painting 1.5k) and I subbed out the painting for 1.5k to other painter, do I still have to pay tax on the 1.5k because I'm the one who subbed it out or do I just pay revenue the rct on it and the other trademan the rest?

    You only pay tax on profits. If you are subbing out the job on a no profit or loss basis it has no affect on your profit for tax purposes.


  • #4
    shugy
    Banned (with Prison Access) Posts: 409 ✭✭shugy


    So all i need to do is if they want 124 a day (1240 total), i phone up revenue and pay 24 euro on the 124 so they have 100 in their hand per day worked.


  • #5
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,629 ✭✭✭✭Marcusm


    CIARAN_BOYLE wrote: »
    You only pay tax on profits. If you are subbing out the job on a no profit or loss basis it has no affect on your profit for tax purposes.

    For the purposes of Relevant Contracts Tax? I don't think profitability is relevant.


  • #6
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Marcusm wrote: »
    For the purposes of Relevant Contracts Tax? I don't think profitability is relevant.

    The OPs questions is after paying rct does he pay tax. I presume he means IT. Profitability is relevant to IT.


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