A questions that has often been asked is whether you can have someone working for you as a subcontractor. Do they invoice your business as “the subcontractor” and deal with their own taxes?
A recent case involving Domino Pizza drivers and Revenue brought some clarity to the situation.
Justice Murray the judge in the case decided that the question of whether…. A contract is one “of service” or “for service” should be resolved by reference to the following five questions:
In this case, Justice Murray found that Revenue’s Tax Appeal Commissioner was entitled to conclude that the drivers were employees for the purposes of income tax.
Businesses must ensure that appropriate taxes, encompassing both salary and any notional pay, are deducted from their employees’ salaries and timely remitted to the Revenue under the PAYE system.
Revenue has advised all businesses and their representatives to acquaint themselves with the specifics of this recent court judgment, accessible on the Court Service website.
Businesses that hire contractors, subcontractors, or others as self-employed workers (meaning these workers are not classified as employees for tax purposes) are particularly urged to reassess these relationships considering this judgment. They should evaluate any potential effects on their operations. It’s essential to recognize that this judgment has wide-ranging relevance, extending beyond just the realm of delivery drivers.