implications of being self-employed

[jim]

I have two questions arising out of the following that I am hoping someone can help with.

My 60 year old father worked for a particular company for 6 years up until 1.5 years ago. He was deemed to be self-employed by his employer and was responsible for making his own tax returns. He earned a salary from his employer as well as commission.

My mother spoke to someone in the revenue recently and they said that from the information they were hearing my father was an employee and shouldnt have been treated as self-employed. In fact the employer in question has come to their attention with regards to another individual that raised this same issue. The issue is that because they were treated as self employed they now have no social welfare entitlement.

Should his past employer not have been paying ee PRSI on his behalf? How is it determined whether or not he was self-employed?he certainly did not have his own business or was carrying on a trade. I think his employer was pulling some sort of a fast one with this arrangement.

Any comments etc are welcome.

 

[TTI]

Describe the work that he was doing and the hours and the location of this work. Is the company still trading?

 

[jim]

Company still trades. He was working approximately 9-5 for this single company..he didn't do work for any other company. He received a weekly wage from the company (as well as commission on what he sold). He was under the direction of one individual, his boss.

His role was as a sales man.

In terms of location, the company had a head office that he reported to at least every morning and then he was out and about trying to get sales

 

[Black Sheep]

The "Scope" section of the Department of Social Protection makes decisions on employment /self employment. It may be worth reading (welfare.ie) on how the comparisons are made or contacting them at Oisin House

 

[vandriver]

I suspect that you have read this already,but for anyone else in this situation.

http://www.revenue.ie/en/tax/rct/determining-the-correct-employment-status-of-a-worker.html

 

[T McGibney]

The Revenue "guidelines" are not conclusive in this area, as Revenue have a vested interests of sorts in ensuring people in such situations are treated as employees. It is the law that determines the position and there is a long and complex list of case law precedents here, some of which contradict each other. The precise facts of the case including the terms of the agreement between the two parties are key here. The OP's father may need legal advice if he wishes to pursue this as there may well be drawbacks in so doing. Tread carefully.