What is RCT?
RCT (Relevant Contracts Tax) is a tax system where the principal contractor deducts 35% tax from payments to subcontractors for whom they do not have a relevant payments card. RCT applies to construction, forestry and meat processing operations and only when the principal contractor and subcontractor operate in the same industry. If you are a subcontractor without a C2, you will receive an RCT Deduction Certificate, known as Form RCTDC, from your principal contractor when you get paid. You will need your RCTDCs from each of your employments during the tax year to claim a refund of this tax.
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