Revenue eBrief No. 067/19

eRCT Bulk Rate Review

In early April 2019 Revenue will, as usual, carry out a Bulk Rate Review (BRR) of all subcontractors in the eRCT system.

In February 2019 Revenue wrote to subcontractors to remind them that any outstanding VAT Return of Trading Details may result in a subcontractor moving to a higher rate of tax. Subcontractors were also advised of the self-review facility available on ROS.

Further information on the BRR can be found in Tax and Duty Manual Part 18-02-05.

Extract:
3. Rates of tax and determination of rates for subcontractors

The criteria for determining the rates of tax (zero, 20% or 35%) for a subcontractor are set out in sections 530E, 530G, and 530H TCA 1997. The system is designed to use theinformation available to it to determine the appropriate rate for a subcontractor. As the information needed to determine the subcontractor’s rate will not always be available to the system, case workers can override the determination made by the system. It should also be borne in mind that in the RCT system, real time data is available that will allow officers make informed decisions on determining the correct rate.

Where a subcontractor’s rate changes a letter will issue to the subcontractor and to any principal contractor in an active contract with that subcontractor informing them of thechange.

3.4 Bulk rate review

At predetermined intervals, the system will carry out a bulk rate review. The rate of every live subcontractor on record, except those with a rate end date that has not passed, will have their rate reviewed in the bulk review. The criteria that the system uses are set out in Tables I, II and III below. Again, it should be borne in mind that the system determines the rate based on the information it can access. All caseworkers should ensure that CRS records are updated on an ongoing basis where directors or partnerships change to ensure that the system has access to the latest information and to reduce the need for manualinterventions.

As rates are amended, either through bulk review, manually by a caseworker or by thesubcontractor through the ROS self-review facility, the subcontractor, and all principals they have contracts with, will be notified of the new rate.