Help and advice needed re RCT deduction system.

[guideanna]

My husband (new business), has been asked to carry out work as a sub-contractor on a building site.
We have just learnt about that RCT deduction system.

Trying to get revenue on the phone to ask but it's over 10 minute waiting list and i'm working today so cannot stay on the phone that long.

Can anyone tell me what we need to do.
Its a brand new business, so coming from PAYE he is fully tax compliant, do i need to ring and ask for certification of this for the principle contractor?
He doesn't really want a big deduction when being paid if possible.

Also, tried to register him for ROS and it's asking me for a Regn. No./ Id No., where, when would i get this?
He filled in the TR1 and has dropped that into revenue, should we have got a number from then?

Sorry for the stupid questions, not the easy when you've never done it before and oh is hopeless at this end of things so im trying to help out.

 

[Joe_90]

The TR1 is the registration form for Income Tax and VAT.

He should get a letter from Revenue stating when he is registered from and under what number. Usually his PPSN.

Once he is registered the Principle before he pays him will enter his details into the eRCT system and that will tell the Principal how much tax to deduct. If your husband is registered and his returns are up to date then the deduction may be 0%.

Your husband does not charge the Principal VAT.

Hope that helps.

 

[guideanna]

thanks so much for that.
I believe we are still waiting on revenue to send us that letter so, i will call them tomorrow when i have the time and find out how long that usually takes (sent it 2 weeks ago now).

Hopefully can get all sorted before he does the job as that deduction system seems a lot for those who are tax compliant. Suppose it will all make sense when i get it organised, find Revenue a nightmare to deal with, so unforthcoming with info and the website is useless.