RCT software for principal contractors in Ireland
Nxsys runs Relevant Contracts Tax alongside your PAYE payroll. Notify Revenue of contracts and payments through eRCT, deduct RCT at the rate Revenue authorises and give every subcontractor a deduction summary, from the same system you use to pay your staff.
What is Relevant Contracts Tax?
RCT is a tax that principal contractors in construction, forestry and meat processing must operate on payments to subcontractors. It runs online through eRCT: you tell Revenue about each contract and each payment, and Revenue tells you how much tax to deduct.
0%
For subcontractors with a strong tax compliance record. You pay them in full.
20%
For subcontractors who are registered for tax with Revenue.
35%
For subcontractors who are not registered or have serious compliance issues.
Revenue sets the rate on each deduction authorisation. Nxsys applies the rate Revenue returns, so you never have to work it out yourself.
Everything you need to operate RCT
Nxsys handles the full eRCT process, from the first contract to the monthly return.
Contract notifications
Set up each subcontractor and contract once.
- Contract notification sent to Revenue before the first payment
- Subcontractor details and tax reference stored in one place
- Rate history kept for every subcontractor
Payment notifications
Tell Revenue about every payment before you make it.
- Payment notification sent for each payment
- Revenue’s deduction authorisation returned with the rate and tax to deduct
- Net amount paid to the subcontractor through Nxsys
Deduction summaries and returns
Keep subcontractors and Revenue up to date.
- Deduction summary for every subcontractor
- Monthly RCT return built from your payment notifications for you to review
- Reports of RCT deducted by subcontractor and by month
Payroll and RCT together
One system for employees and subcontractors.
- PAYE, USC and PRSI payroll for your employees
- RCT payments for your subcontractors in the same account
- One login, one set of reports and one plan
Nxsys covers Irish payroll from RPNs to auto-enrolment, with RCT included in the same plan.
How RCT works in Nxsys
Add the contract
Add your subcontractor and contract details, and Nxsys sends the contract notification to Revenue.
Notify the payment
Enter a payment. Nxsys sends the payment notification and gets Revenue’s deduction authorisation.
Pay and report
Pay the net amount, send the deduction summary and review your monthly RCT return.
Who does Nxsys work with?
Nxsys is built on trusted platforms and connects with ID checks, HR tools and the apps Irish payroll teams already use.
What businesses say about Nxsys
★★★★★ Rated 5.0 on Capterra
“A really smooth onboarding experience and it’s been hassle free since then.”
“Nxsys is very user friendly and easy to navigate. Queries are dealt with quickly from the support team.”
“The candidate onboarding via the app is a real asset to our business.”
01Who has to operate RCT?
Principal contractors in the construction, forestry and meat processing sectors must operate RCT on payments to their subcontractors.
02What are the RCT rates?
There are three rates: 0%, 20% and 35%. Revenue decides which rate applies to each subcontractor and states it on the deduction authorisation.
03Do I still need to file an RCT return?
Yes. Revenue builds your monthly RCT return from the payment notifications you sent. You review it, and Nxsys gives you the reports to check it against.
04What happens if I pay a subcontractor without notifying Revenue?
Revenue can charge a penalty and hold you liable for the tax you should have deducted. Nxsys asks for the payment notification before every payment, so nothing is missed.
05Can I run payroll and RCT in the same system?
Yes. Nxsys runs PAYE payroll for your employees and RCT for your subcontractors in one account.
06Is RCT included in the price?
Yes. RCT is included in your Nxsys Payroll plan, with no extra module to buy.
Run RCT and payroll with Nxsys
Contract notifications, payment notifications and deduction summaries, alongside your payroll. One plan, every feature included.
