Getting Started
Before you implement RCT or CIS in BrightBooks for your business, we recommend you go through the Getting Started guide. Please note, that RCT does not apply to professionals such as architects, surveyors etc.
- Setting Up RCT for Ireland Business
- Setting Up CIS for United Kingdom Business
- Enable RCT for Customers from Contact Browse
- Enable RCT for Supplier from Contact Browse
- Enable CIS for Customer from the Contact Browse
- Enable CIS for Supplier from Contact Browse
- New Nominal Code in Nominal Ledger
- Invoicing with RCT
- New RCT/ CIS Invoice Layout
- Posting of Receipt
- Posting of Payment
- VAT Return for Purchase
- VAT Return for Sales
- Reports
Setting Up RCT for Ireland Business
To enable Relevant Contract Tax (RCT) for an Irish Business, select Settings˃ Accountants Set Up the following screen will appear. The option on the Account Setup pop-up, the option Enable RCT Transaction tick box must be ticked. Please note RCT is only applicable to IE-based businesses only.
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Setting up Construction Industry Scheme (CIS) for UK Business
To enable the Construction Industry Scheme (CIS)for UK Business, select Settings˃ Accountants Set Up the following screen will appear. The option on the Account Setup pop-up, Enable CIS Transaction tick box must be ticked.
Please note, that CIS is only applicable to UK-based businesses only
Enable RCT for Customer from Contact Browse for IE Business
If a business is a Subcontractor, the customer may be an RCT Principal. A tick box has been added to the Customer Contact browse below the VAT No. column to show as an RCT-enabled customer.
After selecting RCT Principal tick box a VAT Code will be automatically populated. You need to change the default VAT Code apart from the RCT VAT code. While saving an information message will appear as “Select VAT Code does not match with RCT VAT Code”.
You need to change the customer Default VAT Code to the RCT code, whichever applies to your business.
Enable RCT for Supplier from Contact Browse for IE Business
If the business is a Principal, the suppliers of that business may be a Subcontractor. A tick box has been added to the Supplier Contact browse below the VAT No. column to show as an RCT-enabled supplier.
If you have ticked the supplier as RCT by mistake you can only untick this option if no transactions have been posted. If transactions have already been posted on the suppliers account you will not be able to untick them as RCT and will need to set the supplier up again.
Enable CIS for Customer from the Contact Browse for UK Business
If a business is a Subcontractor, the customer may be a CIS Principal. A tick box has been added to the Customer Contact browse below the VAT No. column to show as a CIS-enabled customer.
Enable CIS for Supplier from the Contact Browse for UK Business
If the business is a Principal, the suppliers of that business may be a Subcontractor. A tick box has been added to the Supplier Contact browse below the VAT No. column to show as a CIS-enabled supplier.
New Nominal Code in Nominal ledger
In BrightBooks, we have added a new account code 748 for Retained Tax Control (for both IE Business and UK Business). From the Accounts tab, select Chart of Accounts under General Ledger the following screen will appear.
For UK business the nominal code and the description remain the same Retained Tax Control Chart of Accounts. The RCT values will be posted for control code 748 i.e. Retained Tax Control from Receipt and Payment.
Invoicing with RCT
Using RCT VAT see the following illustrations:
Detailed Sales Invoice:
If you have multiple product lines in detailed sales or purchase invoices, the RCT VAT code must be the same.
| FIELD | STEP |
|---|---|
| Customer | Select the customer by using the magnifying glass. |
| Product | Select the product by using the magnifying glass. |
| VAT % | The RCT VAT code will auto-populate in the VAT % column as you have already set the VAT rate in the ‘Contact’ browse. |
Please note that on the Quick Invoice, the RCT VAT code should be the same in splits.
Please note, it is not possible to include RCT and normal VAT Rates on the same Invoice. You will need to create RCT Invoices separately from regular VAT Invoices.
Upon allocation, you can select the RCT rate that applies.
New RCT/ CIS Invoice Layout
We have added a new line as “VAT on this supply to be accounted for by the Principal Contractor.” When you print the invoice this line will appear under the gross total.
Please Note, this line will not appear on the RCT-enabled purchase invoice.
Posting of Receipt
We have added a new column in the customer receipt browse for RCT Customers (CIS for UK customers) followed by the ‘Paid’ column in detailed customer receipts.
If the customer is RCT / CIS enabled, we have added a new column to the allocation as RCT (CIS for UK Business) followed by the ‘Pay’ column.
Resolving RCT Showing as N/A During Receipt Allocation
If RCT displays as N/A when allocating a receipt, it typically means the receipt and/or the target invoices aren’t meeting the requirements for RCT allocation.
Prerequisites to verify
- The invoice(s) are RCT-enabled: Open the target invoice(s) and confirm an RCT-related tax code/rate is selected.
- Customer/supplier profile: Ensure the relevant customer/supplier is marked appropriately for RCT and the correct RCT rate applies.
- RCT rate exists and is active: In settings, confirm the applicable RCT rate(s) are configured, active, and valid for the invoice date.
- Correct linkage: The receipt should be recorded against the same customer/supplier as the RCT invoice(s). If it’s unallocated or linked to the wrong party, RCT may remain N/A.
- Permissions: Ensure your user role can allocate receipts against RCT invoices.
Steps to fix
- Edit the invoice: If the invoice doesn’t have the right RCT code/rate, update it and save.
- Refresh allocation: Return to Receipt > Allocation, reload the page, and try the allocation again. The RCT field should now offer a selectable rate instead of N/A.
- Correct the receipt: If the receipt isn’t linked to the right customer/supplier, edit it so it matches the RCT invoice(s).
- Partial allocations: Enter the allocation as required; the system should calculate the RCT withheld component if all prerequisites are met.
Still seeing N/A?
- Create a quick test invoice with a known RCT setup and attempt an allocation to confirm whether the issue is account-wide or invoice-specific.
- Try a different browser or a private/incognito window to rule out caching.
- Share with support: receipt ID, invoice ID(s), screenshots of the Receipt > Allocation screen showing RCT = N/A, and screenshots of your RCT/tax settings and the invoice tax code.
Note: If your allocation screen intentionally limits RCT to specific document types or statuses, ensure the invoice is in a status eligible for allocation (e.g., approved/posted).
Posting of Payment
If the supplier has RCT ticked, a new column to the allocations, "RCT" ("CIS" for UK).
If the supplier has RCT ticked, a new column to the allocations, "RCT" ("CIS" for the UK). The RCT rate entered on the invoice is the same for all lines and split invoices.
Invoice "Unpaid" value is reduced by the summation of Pay value, Discount, and RCT.
VAT Return for Purchase
When your business is an RCT Principal, the RCT transactions take a similar approach to EU Notional VAT transactions. It is applied on both sides of the VAT return which cancels out. It will not appear in the E1 /ES1/ E2/ ES2 boxes.
Please note, that RCT is only applied when principals and subcontractors are in the same country.
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VAT Return for Sales
On Sales, if the business is an RCT subcontractor, the sale is treated as same as any other Zero-Rated. The amount of VAT on Sales will appear under the T1 box.
Reports
We have added a new column as ‘RCT Value’ under the Customer – Non-Customer Receipt and Supplier / Non-Supplier payment report. To include the RCT Value column, select ‘Advance’ in the report and from the Column Order include the RCT Value column.