CROSS BORDER RCT / CIS

CROSS BORDER RCT / CIS

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I have a self employed builder from Northern Ireland who has been working on a site in ROI, he is registered for income tax in the North....  for the first few months CIS tax was deducted and payments where made in Sterling.

Now payments are made in euro and RCT tax is deducted.

What is his tax position in ROI, is he required to register for income tax in ROI as well as NI? Or can he claim back the RCT deducted in the south and pay tax on the total gross income in the uk? 

I'm not familiar with taxes in ROI so any help would be greatly appreciated.

 Thanks

Replies (3)

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By oor001
16th Feb 2015 17:17

He needs to register as self employed in ROI and claim his RCT deductions through the Irish system.

He then needs to include his Irish income on his UK return

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By mdcallen
16th Feb 2015 17:30

roi

He does not need to register for income tax in ROI, unless he is on a single site for a sufficient length of time such that it becomes a permanent establishment (generally 6 months but you should check this).

He has a choice with regards to RCT. He can register for payment gross (used to be a C2 card) or he can reclaim the RCT deducted (can be done regularly but not necessarily a quick process).

Irish Revenue guidance on this is good:

http://www.revenue.ie/en/tax/rct/non-resident-contractors.html 

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By oor001
16th Feb 2015 22:57

This is not correct - the RCT system changed in 2013 (from memory)

He will not have a choice in what deduction rate is given - there are three 35%, 20% and 0%

Unless he is registered - it will be 35%. If he is registered - it will be 20%

He will not get 0%, unless he meets certain conditions.

RCT is now refunded once a year, much like the CIS system.

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