A report from Government on the implications for social insurance and tax receipts of intermediary employment structures and self-employment arrangements suggests reducing the differential between Class A and Class S PRSI rates and deeming some self-employed workers as Class A contributors.

The report does not propose specific amendments to tax or social welfare legislation. It does set out three proposals:

1. Consider reducing the differential in social insurance rates, so as to reduce the financial incentive to employers and employees to use self-employment arrangements and intermediary-type structures.
2. Consider undertaking an awareness campaign to promote the services of the Scope insurability section.
3. Explore further legislative options to treat nominally self-employed workers who are dependent on a single employer as class A contributors with the employer PRSI contribution paid by the company which actually uses their services and to assess any payment made to the worker as liable for income tax.

The various compliance activities of DEASP and Revenue in relation to the construction sector are also covered in the report. The press release from the DSEAP provides some additional information. The report and press release are published on the DSEAP website www.welfare.ie

The joint report from the Department of Finance and the Department of Employment Affairs and Social Protection (DSEAP) follows a public consultation in early 2016. Chartered Accountants Ireland made a submission under this consultation. Read our submission on our website www.charteredaccountants.ie