Revenue is currently reviewing the entitlement of subcontractors, with a C2 expiry date of 31 December 2010, to renew their C2 card for 2011. As part of this review, letters have issued to subcontractors who, according to Revenue records, have outstanding liabilities and/or returns. Details have been provided to the subcontractor with the letter.

Subcontractors with outstanding liabilities and/or returns

A new C2 card for 2011 will not issue to subcontractors until their tax affairs have been brought up to date. No additional reminders will issue to subcontractors regarding this matter.

When subcontractors have brought their tax affairs up to date

Subcontractors who have received a letter should contact their local tax office when their tax affairs are in order. This will ensure the timely issue of C2 cards which will be effective from 1 January 2011.

Principal contractors

Principal contractors are reminded that they must have a valid Relevant Payment Card (RCT 47) before making gross payments to a subcontractor. Where the contract is ongoing at 31 December 2010, the principal contractor can make a bulk application to Revenue for payments cards on Form RCT 46A.

The relevant payment cards for 2011 will not issue to the principal contractor until the valid C2 has been collected by the subcontractor. Relevant Contracts Tax at 35% should be deducted from any payments made to the subcontractor after 1 January 2011 and before the relevant payment card is received.