Businesses that hire contractors should check that they are complying with tax law following the recent Domino’s Pizza ruling, Revenue warned on Friday.
Mr Justice Brian Murray ruled in the Supreme Court that drivers hired by Karshan (Midlands) Ltd, trading as Domino’s Pizza, were employees and not self-employed as the company maintained.
Revenue warned businesses that hire contractors or other self-employed workers to check these arrangements in light of the case to ensure that they are complying with tax law.
“It is important to note that this judgment is relevant to a broad range of work and it not limited to delivery drivers,” said a statement.
Ireland has won the corporation tax game for now, but will that last?
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Elf doors, carriage rides and boat cruises: Christmas in Ireland’s five-star hotels
One in four PAYE workers are overpaying tax. Can you claim money you’re owed?
Mr Justice Murray found that several questions were relevant to deciding if workers in this situation were employees.
[ Domino’s Pizza driver ruling could have wide-ranging implicationsOpens in new window ]
These include whether the contract involves payment for work and, if so, are the individuals agreeing to provide their own services, rather than those of a third party, to the employer? Does the employer exercise sufficient control over the worker?
Revenue pointed out that businesses were responsible for deducting the correct taxes from employees’ pay and remitted to it under PAYE rules.
The ruling’s full text is available on the Courts Service website, the statement added.
