Self Employed V Employee

When the school is engaging the services of external personnel e.g. drama, music, sports coaching etc., it is important to determine whether the individual is self-employed or an employee.  The following factors should be considered to ensure the school complies with Revenue requirements.

An individual would normally be considered self-employed if he/she:

  • Owns his or her own business and is responsible for investment and management of the business.
  • Costs and agrees a price for the job. Is exposed to financial risk, by having to bear the cost of making good faulty or substandard work carried out under the contract.
  • Has control over what is done, how it is done, when and where it is done and whether he or she does it personally. Controls the hours of work in fulfilling the job obligations.
  • Is free to hire other people, on his or her terms, to do the work which has been agreed to be undertaken.
  • Can provide the same services to more than one person or business at the same time.
  • Provides the materials, equipment and machinery necessary for the job, other than the small tools of the trade or equipment. Has a fixed place of business where materials equipment etc. can be stored.
  • Provides his or her own insurance cover e.g. public liability etc.

An individual would normally be considered an employee if he/she:

  • Works set hours or a given number of hours per week or month and is under the control of another person who directs as to how, when and where the work is to be carried out.
  • Supplies labour only and cannot sub-contract the work. If the work can be subcontracted and paid on by the person subcontracting the work, the employer/employee relationship may simply be transferred on.
  • Receives a fixed hourly/weekly/monthly wage and is entitled to extra pay or time off for overtime and receives expense payments to cover subsistence and/or travel expenses.
  • Does not supply materials or provide equipment other than the small tools of the trade.
  • Is not exposed to personal financial risk in carrying out the work or any responsibility for investment and management in the business.
  • Works for one person or for one business.

See most recent Revenue guidance update:

Taxation of Part-Time Lecturers/Teachers/Trainers

If you need any further information please email or phone (01) 9104020.