Revenue issues new guidance on determining employment status for tax purposes
Yesterday, (21/05/2024), Revenue published new guidance outlining the tax implications of the Supreme Court judgment in ‘The Revenue Commissioners v Karshan (Midlands) Ltd. t/a Domino’s Pizza’ on determining employment status for tax purposes.
The Tax and Duty Manual, Revenue Guidelines for Determining Employment Status for Taxation Purposes, explains the five-step decision-making framework that businesses are required to use to determine whether a worker is an employee or self-employed for taxation purposes. The manual also includes a number of practical examples which will assist businesses in determining what the Supreme Court decision means for the taxation of workers they engage.
Revenue previously encouraged all businesses that were engaging contractors, sub-contractors or other workers on a self-employment basis to familiarise themselves with the details of the judgement and review their workforce model in light of same. Revenue reminds businesses that they are responsible for ensuring that the correct taxes are deducted from their employees’ pay and reported through the PAYE system, and any business which has not yet self-reviewed their work force model in light of the Supreme Court judgement should do so now.
[ENDS 22/05/2024]