Employees or Self-Employed

In a recent tax briefing document, Revenue have promised to continue to focus on the issue of employed v self-employed across a multiplicity of sectors for the foreseeable future. Right now, they are focussing on locums in medicine, healthcare and pharmacy. The move is part of an overall strategy by the Revenue to bring more workers into the PAYE net.

The ebriefing document is here http://www.revenue.ie/en/practitioner/tax-briefing/82/.

If you have individuals working for you on a self-employed basis it is important for you to consider whether these are really self employed or employees. The Revenue could consider you liable for PAYE/PRSI on any payments to them.

Your starting point should be the Code of Practice for Determining Employment or Self-employment Status of Individuals.

From the ebrief:

“This is not a Revenue Code of Practice. It has its origins in the Employment Status Group (set up under the Programme for Prosperity and Fairness) which sought to provide clarity as to whether, in relation to an engagement, an individual is employed or self-employed. As outlined in the Code, “that group was set up because of a growing concern that there may be increasing numbers of individuals categorised as ‘self employed’ when the ‘indicators’ may be that ‘employee’ status is more appropriate”.The Code of Practice was updated in 2007.

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