Revenue have issued new Guidance Notes for School Boards of Management on how Relevant Contracts Tax (RCT) and VAT affect school building projects and repairs & maintenance works.
Since 2012, school Boards of Management have been counted as ‘Principal Contractors’ for RCT purposes.
Where a Board of Management undertakes construction works (including associated repairs or alterations to a building or structure), they must operate RCT procedures on all payments to contractors.
There are serious penalties for failing to comply with these obligations, so school Boards should take special care to ensure that their VAT and RCT affairs are fully in order.
If you’re not fully certain of what exactly to do, avoid a potential nightmare by getting proper professional advice.