I am a sole trader; companies are applying PAYE to my invoices?

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serendipitous

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I'm a freelance worker in the theatre/TV/events industry. I've been registered for income tax for six years, as a sole trader, and I'm fully tax compliant.

In the last month, two large companies that I invoiced for one-off events have put me through their PAYE payroll system, using the Tax Registration Number on my invoices. (As a sole trader, this is the same as my PPSN.) They didn't tell me they were going to do this, or ask permission. I'm annoyed at (a) unauthorised use of my PPSN, (b) the PAYE deductions have messed up my cash flow, and (c) now I have a messy "employment" record, which confuses my deductions and business expenses.

Other clients during the last month have paid my invoices in full, as normal.

Q1 - Has there been some change in legislation or interpretation that has resulted in these companies pushing me through as an employee? I've heard that Revenue are cracking down on bogus self-employment, but this seems to be bogus employment!

Q2 - Is there any way to stop my clients registering me as an employee? It seems that anyone who has my TRN can do this, and I don't find out until after the payroll run.
 
You should be clear in your written contract with clients from the outset that you are an independent contractor and are to be paid accordingly (ie gross). Then when they do this, you can go back to them to dispute your payment.

I've seen this happen before, where the client puts you through payroll as a part time employee.

It's frustrating from a cashflow perspective, but you will get credit for the tax payments made on your behalf.

I'm unaware of any legal changes, but I do know Revenue are investigating commercial arrangements between Employers and Contractors.
 
Yes there is a new focus on this, especially since Covid
re this seems to be bogus employment! read the code of practice on employment status on the revenue website
https://www.revenue.ie/en/self-asse...nts/code-of-practice-on-employment-status.pdf
My company has advised me that I will be an employee by end May due to their accountants flagging it and stating that they would put a note on the audit report if it was not sorted.
As for question 2, no, if they deem you to be one as they are the ones at risk due to the non payment of ER PRSI etc
It also helps with Revenue cash flow :)

Rather than moans about it, look at it as opportunity to look at your "corporate structure"
 
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