Ifac has urged all farmers and agri-businesses to review their staffing arrangements to avoid the risk of fines after Revenue updated the eligibility criteria that decide whether a worker is an employee or self-employed for tax purposes.
Farm relief staff, contracted tractor drivers, locum vets hired in during calving or lambing, seasonal farm workers and part-time mart staff are among the groups particularly affected by the changes.
Revenue has given businesses an opportunity to correct any non-compliances arising on worker tax status during 2024 and 2025 without penalties or interest payable.
However, the correct PAYE, USC and PRSI will be due, with credit to be given where workers already paid tax under self-assessment.
“If these people work under your direction, use your equipment and take no financial risk themselves, Revenue is likely to view them as employees,” ifac said.
“It’s clear if you have anyone working for you and no payroll in place, you need to review the position now.”
The period for making disclosures without incurring penalties runs until 30 January 2026.
Ifac has warned that misclassifications found by Revenue after this date will be treated as a failure to operate PAYE, USC and PRSI – with full interest and penalties applied.
“At ifac, we welcome Revenue’s practical approach. But the responsibility now rests with farmers to act quickly.
“Reviewing contracts, calculating liabilities and preparing disclosures takes time, and mistakes could be costly if deadlines are missed,” it said.
SHARING OPTIONS