Relevant Contracts Tax (RCT)

How to set up and manage Relevant Contracts Tax (RCT) in Sage Accounting. This includes setup, transaction processing, banking, and reporting for both subcontractors and principal contractors.

Get started with RCT

Set up RCT for your business and contacts before processing transactions.

• What is RCT and who needs to use it?
  Find out if your business needs to register for RCT and how it works in Sage Accounting.

• Enable RCT for your business
  Learn how to turn on RCT and choose if you operate as a subcontractor, principal contractor, or both.

• Flag a customer as a principal contractor
  See how to mark a customer as a principal contractor for RCT.

• Flag a supplier as a subcontractor
  Learn how to mark a supplier as a subcontractor for RCT.

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Manage RCT transactions

Process RCT-related transactions for your customers or suppliers.

• Create an RCT sales invoice
  Step-by-step instructions for raising an RCT sales invoice with site and deduction details.

• Record an RCT customer receipt
  Learn how to post a receipt against an RCT sales invoice and calculate the RCT deduction.

• Create an RCT purchase invoice
  Learn how to flag a supplier invoice as RCT and add site details.

• Record an RCT supplier payment
  Learn how to post a payment against an RCT supplier invoice and calculate deductions.

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Reporting

Run RCT-specific reports and update your VAT submissions.

• View Relevant Contract Tax (RCT) deduction summary
  See RCT you withheld from payments to your subcontractors. This Sage Accounting report helps you reconcile RCT deducted with your Revenue summary.
• View Relevant Contract Tax (RCT) deducted from principal contractors
  See RCT withheld from receipts you received from your principal contractors. This Sage Accounting report helps you reconcile RCT suffered with your Revenue summary.