2024- the beginning of the end for IT contractors in ireland ( New revenue framework)

iewd

Following the Supreme Court of Ireland's ruling in the notable "Domino's Pizza" case in late 2023, which clarified the distinction between employees and contractors, Revenue issued a document in 2024 outlining a "5-Point Framework." This framework serves as a legal guideline for determining contractor status under the law and Revenue's interpretation.

link of the document:

""www.revenue.ie/en/self-assessment-and-self-employment/construction-industry/are-you-self-employed-or-an-employee.aspx""

""https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-30.pdf""

Many contractor agencies that have been in the industry for years, such as morgan mckinley, eir evo talent or integrity 360, have offered and continue to offer contractor positions in the website or social networks.

Many of these positions, require a specific working time, a dedicated person (yourself) , which coincides with the revenue example on page 42 of the framework document.

I have had references in the sector that some companies have changed their hiring policy and those they had have been moved to full time contracts to avoid future complains.

What do you think, will there be changes in the companies in 2025 and the figure of the contractor will disappear or the figure of the contractor will evolve to a model with more freedom and control?

TaurenDruid

https://www.boards.ie/discussion/2058380249/2024-the-beginning-of-the-end-for-it-contractors-in-ireland-new-revenue-framework

Hopefully, yes, and it's an end to fake self-employment, and such employees end up paying their fair share of PAYE and PRSI, with no more shenanigans of "Can I have the receipt, please?" "Why?" "So I can claim lunch as a business expense." 🤨

Mrs OBumble

It will go both ways: some will become even more like real contractors, others will become agency workers.

Can't see many becoming direct hires: there's a reason the client didn't hire in the first place.

Jim2007

https://www.boards.ie/discussion/2058380249/2024-the-beginning-of-the-end-for-it-contractors-in-ireland-new-revenue-framework

You have just described the way of operating in most of Europe, except there is usually no provision for a substitute. I've lost count of how many contractors I've employed on this basis over the years in Germany, France, Denmark and Switzerland. A part from not seeing the Brits anymore it has not changed much, although outsourcing has taken it's tole on the market especially if you do have business specific knowledge.