RCT in Ireland: What Contractors and Subcontractors Need to Know

RCT Filing & Bookkeeping Services for Contractors Ireland

September 23, 20253 min read

Custom HTML/CSS/JAVASCRIPT

If you’re operating in construction or any related industry in Ireland, you’ve likely encountered

Relevant Contracts Tax (RCT) — and if you haven’t handled it properly, you may have already learned how strict Revenue can be.RCT is a withholding tax that applies to payments made by principal contractors to subcontractors. It exists to ensure Revenue can track tax liabilities throughout the construction chain — but for business owners, it can feel like a complex compliance burden. At KeepTheBooks.ie, we help contractors and subcontractors avoid penalties, stay compliant, and focus on what they do best — running their business.

What Is RCT and Who Needs to File?
RCT applies to a wide range of industries including:

  • Construction

  • Forestry

  • Meat processing

  • RCT filing services Ireland

  • Accounts payable services Ireland

If you’re a principal contractor, you’re required to operate RCT on payments to subcontractors — meaning you must notify Revenue in advance of making payments, deduct the appropriate tax, and file a return.If you’re a subcontractor, you may have RCT deducted from your payments and need to monitor your own Revenue records.

Common RCT Mistakes That Cost Businesses
At KeepTheBooks.ie, we frequently support clients who come to us after facing RCT-related challenges. Some of the most common pitfalls include:

  • Failure to register properly as a principal contractor or subcontractor

  • Late or missed monthly RCT returns

  • Incorrect contract notifications or payment reporting

  • Overlooking the tax deducted or reclaimed by Revenue

  • Accumulated interest and penalties due to non-compliance

These are not minor mistakes — Revenue takes RCT compliance seriously. Missing just one submission or misreporting a single payment can result in costly consequences.

The Cost of Getting RCT Wrong
RCT non-compliance can lead to:

  • Interest charges on late or incorrect payments

  • Fixed penalties

  • Suspended or reduced tax clearance status

  • Delays in payments from clients who require RCT compliance

  • Increased scrutiny and potential audits from Revenue

And for subcontractors — not understanding how much tax has been withheld can lead to cash flow problems and missed refund opportunities.

How KeepTheBooks Helps You Stay RCT-Compliant
Our team at KeepTheBooks.ie works directly with construction businesses, trades, and professional services that deal with RCT.

Here's how we help:


1. Monthly RCT Compliance and Returns
We prepare and file your RCT returns with Revenue, ensuring that every payment and deduction is accurate and submitted on time.

2. Registration and Setup
We help contractors and subcontractors get registered correctly in ROS (Revenue Online Service) for RCT, ensuring you’re set up the right way from the beginning.

3. Subcontractor Tracking and Reporting
We maintain proper records of your subcontractor payments and RCT rates, and ensure that Revenue is notified before payments are made.

4. Liaison with Revenue
We manage any RCT queries or follow-up issues with Revenue on your behalf, so you can stay focused on your business without interruptions.

5. Clear Monthly Reporting
We provide monthly reports showing all RCT transactions — so you always know who was paid, how much tax was deducted, and what’s been filed.

Keep Your Focus on the Job Site — We’ll Handle the Paperwork
You didn’t start your business to chase paperwork or wrestle with Revenue’s RCT rules. But ignoring it can lead to delayed payments, fines, and serious stress.

KeepTheBooks.ie offers full monthly bookkeeping services tailored for Irish trades, contractors, and SMEs — including:

  • Bookkeeping

  • VAT filings

  • RCT returns

  • Payroll

  • Bank reconciliation

  • Cash flow and profit reporting

When your books are clean and your RCT filings are on time, you avoid penalties and protect your business reputation.Book A Consultation!


If RCT compliance is draining your time and energy — or if you’re unsure whether you’re handling it right — let’s talk.


We’ll take the stress off your plate, so you can focus on delivering projects and growing your business.Book your consultation today at https://keepthebooks.ie/contact-us

Back to Blog
KeepTheBooks.ie Logo

Quick links

Join our newsletter

Blackhall Pl, Mullingar, Co. Westmeath, Ireland

Join our newsletter

© 2025 KeepTheBooks.ie. All Rights Reserved.