If your business operates as a subcontractor, you must flag any customers who act as principal contractors for RCT purposes.

If you flag a customer as a principal contractor, you can mark sales invoices and credit notes as RCT.

While we don't track deductions directly on the invoice, this lets you apply reverse charge VAT (if the business is VAT registered).

You can then record the RCT deduction rate when you create a customer receipt.

We use these details to generate accurate RCT reports when it’s time to make a payment.

You can flag both new and existing customer records.

Revenue rules require principal contractors to register themselves for VAT.

For more information about RCT roles, see: What is RCT and who needs to use it?

 NOTE: Make sure you add the principal contractors VAT number first from the Options tab. 

Update an existing customer as a principal contractor

1. Go to Contacts, then select Customers.
2. Find and open the customer record you want to update.
3. Select the RCT tab.
4. Select the pencil tool to edit the Registered for RCT status.
5. Tick the checkbox next to Registered for RCT and select Save.

Add a new customer as a principal contractor

1. Go to Contacts, then select Customers.
2. Select Add customer.
3. Complete the customer details.
4. Select the RCT tab.
5. Tick the checkbox next to Registered for RCT and select Save.

Now that your customer is a principal contractor, you can include their RCT deduction rate on customer receipts if needed.

If you also work with subcontractors, see: Flag a supplier as a subcontractor.