Taxation of Part-Time Lecturers / Teachers / Trainers

Introduction

The question at to whether part-time lecturers/teachers/trainers are engaged under contracts of service (employees) or under contracts for service (self-employed) arises regularly.

Revenue Position

Revenue’s view is that part-time lecturers/teachers/trainers are employees. Payments are to be made to these individuals net of statutory deductions for PAYE and PRSI.

Case Law

Revenue’s position is founded on a number of precedents, which can be summarised as follows:

Irish Cases

• In the Circuit Court, in 1992, it was held that part-time lecturers employed in a school were engaged under a contract of service (employee).
• In the High Court, in 1986, Mr Justice Murphy held in the case of Stephen Barcroft v Minister for Health and Social Welfare and James Agnew (Social Welfare Appeals Officer), that the teachers engaged by him performed their work under a contract of service and that the employments were insurable.
• A Social Welfare Appeals Officer, in 1996, upheld a Deciding Officers decision that individuals engaged as part-time lecturers, in a teaching establishment, were insurable under the Social Welfare Acts.

UK Cases

• Fuge v McClelland (High Court Chancery Division, 22 June 1956).This case involved a full-time teacher who also taught adult evening courses. It was held that the night work also came under Schedule E, just as much as the day-time activities.
• Mitchell & Eden v Ross (House of Lords, May/July 1961)In this case it was held that part-time specialists (hospital consultants) engaged under the Health Act 1946 were assessable under Schedule E.
• Sidey v Phillips (Chancery Division 5 December 1986)
  In this case it was held that a non practising barrister was properly assessable under Schedule E in respect of his part-time lecturing fees.
• Walls v Sinnett (Chancery Division)
  This case upheld a decision that a professional singer who lectured in music at a technical college for 4 days each week was assessable under Schedule E.

Exceptions

Revenue accepts that the above position need not apply in situations where the lecturers/teachers/trainers give “once off” lectures.

Lecturers/teachers/trainers in these positions will generally only give lectures once or twice a year for the same body. Such lecture fees must, of course, be returned by the individuals concerned under the self-assessment rules.

It would not be accepted, however, that lecturers/teachers/trainers who give a series of “once off” or guest lectures for the same body are outside the scope ofPAYE /PRSI.