We have an audit a few years ago and got a bill for +40k from Revenue for an 'employee' with their own limited company. An elderly gentleman who at one stage had his own staff but was winding down and doing a few days a week for us.
We have an audit a few years ago and got a bill for +40k from Revenue for an 'employee' with their own limited company. An elderly gentleman who at one stage had his own staff but was winding down and doing a few days a week for us.Absolutely not if they've been trading through a limited company.
Wow, how vigorously did you fight that? You should have told them to get stuffed. Ireland lacks an equivalent of the British IR35 legislation that enables HMRC to strip away the corporate veil and derm treat micro company service delivery as de facto employments.We have an audit a few years ago and got a bill for +40k from Revenue for an 'employee' with their own limited company. An elderly gentleman who at one stage had his own staff but was winding down and doing a few days a week for us.
It's a bit more complex than that. When it comes to travel and subsistence, a proprietary director or other employee) cannot claim travel from home to a client site. The term used is not Normal Place of Business but Normal Pace of Work.That's not how Revenue treat the concept of "normal place of business".
How many clients does your company have?
Normal place of work
The normal place of work is where your employee works on a day to day basis. This may not always be your (the employer’s) base. Your business may have additional bases elsewhere. In this case, the normal place of work may not be the same for all of your employees.
Usually, you will provide the facilities your employees need to perform their duties at the normal place of work.
Your employee's home is not usually regarded as their normal place of work. An exception to this is where there is an 'objective requirement' that their duties be carried out at home. Their duties have to be carried out at home because they cannot be carried out elsewhere. It is not an objective requirement if:
- your employee merely carries out, or chooses to carry out, their duties at home
- the duties carried out are incidental (minor or administrative). https://www.revenue.ie/en/employing...vel-and-subsistence/normal-place-of-work.aspx
Agreed. I have contracted in UK and Ireland and IR35 is a killer over there.Wow, how vigorously did you fight that? You should have told them to get stuffed. Ireland lacks an equivalent of the British IR35 legislation that enables HMRC to strip away the corporate veil and derm treat micro company service delivery as de facto employments.
There are 48 pages in that linked document. Perhaps, to save everyone else trawling through it, you might please indicate wherein, it addresses the concept of disguised employment in the scenario where services are provided using the medium of an incorporated entity?Agreed. I have contracted in UK and Ireland and IR35 is a killer over there.
However th concept of disguised employment does exist in Ireland:
.
Separate issue.It's a bit more complex than that. When it comes to travel and subsistence, a proprietary director or other employee) cannot claim travel from home to a client site. The term used is not Normal Place of Business but Normal Pace of Work..
Have posted the link, people can read it or not. Am off on my holidays now.There are 48 pages in that linked document. Perhaps, to save everyone else trawling through it, you might please indicate wherein, it addresses the concept of disguised employment in the scenario where services are provided using the medium of an incorporated entity?
Thank you.
Perhaps. The issue was confused above by talk of Place of Business.Separate issue.
Forgive my ignorance on this but I don't see how the normal place of business would be the person's home. Up until Covid they would always work at the client site. The client has started bringing people back to the office in the latter half of this year and it's possible the person will be back working at the client site from next year.Again you could probably do with specific professional advice but in the absence of further detail it would appear pretty clearcut that the normal place of business here is your home.
You asked for assistance here and I've given you the best I can, within the normal limitations of a free and voluntary online forum.Forgive my ignorance on this but I don't see how the normal place of business would be the person's home. Up until Covid they would always work at the client site. The client has started bringing people back to the office in the latter half of this year and it's possible the person will be back working at the client site from next year.
Wasn't looking to start an argument, as I said I'm pretty clueless about these things and was curious as to how the person's normal place of business would be their home when they would have worked at the client site 5 days per week if it wasn't for Covid.You asked for assistance here and I've given you the best I can, within the normal limitations of a free and voluntary online forum.
My earlier comments stand. You are free to ignore them if you wish, but I'm certainly not going to get into an argument with you about them.
Could have and would have tend to hold little weight whenever a Revenue official is querying something like this....was curious as to how the person's normal place of business would be their home when they would have worked at the client site 5 days per week if it wasn't for Covid.