Revenue Issue Updated Guidelines for Determining Employment Status for Taxation Purposes

Revenue have today issued a new Tax and Duty Manual: “Revenue Guidelines for Determining Employment Status for Taxation Purposes“.

The previous Manual was taken offline to be updated after the October 2023 Supreme Court judgement in the Karshan case.

The new Manual provides welcome clarity as it outlines 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.

However, for some sectors, the new Manual will create additional payroll responsibilities as individuals previously considered self-employed should now be treated as employees and put on payroll.

Revenue have encouraged businesses to urgently and comprehensively review arrangements with all workers and determine their employment status for taxation purposes.

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