Revenue has published updated guidance clarifying that, in general, it holds the view that motor cycle and bicycle couriers should be treated as self-employed from 1 January 2019. While the facts of each case will determine the individual’s status, those who are classed as self-employed individuals will no longer be entitled to the employee tax credit.

Such individuals will now be required to file an income tax return under the self-assessment rules and claim the lower earned income tax credit. In addition, Revenue’s previous agreement on flat-rate expenses for couriers paying tax as employees will no longer apply. Instead couriers can claim expenses under the self-employed rules of deduction.