Contractors working in Ireland are currently under the microscope of the Revenue Commissioners, and the ‘National Contractors Project’ which was launched in 2013. Revenue instigated the project after audits revealed that some individual contractors selling services to clients through personal service companies had evaded tax by overstating the value of travel and subsistence expense claims.

The project is focused on contractors working in technology and pharmaceuticals, who sell their services through various types of company structures. It is perfectly legal for contractors working in Ireland to establish these structures, such as directorships, personal limited companies or employees of an umbrella company, to minimise their tax bill in an efficient and compliant manner. However, after Revenue uncovered cases of excessive expense claims, it launched the nationwide clampdown.

Employment solutions

The National Contractors Project has generated mixed reactions, with some hailing the move – and the millions of euro it has brought into the Exchequer – as a timely and necessary response to a changing work environment where contract employment solutions are preferred among many types of companies, particularly in the tech, software and pharmaceutical sectors. However, reports suggest that the project itself has come under the scrutiny of solicitors, and several legal challenges have been launched by those accused of evading tax by Revenue.

Nevertheless, the National Contractors Project has been extended every year since its launch in 2013, netting increasing sums of revenue for the Exchequer. In some cases, the contractors themselves were unaware that any wrongdoing was taking place, yet, when they were audited, they were left facing bills that had accumulated over years.

Contractors have you got your taxes in order

Tax solutions

This is why any contractors working in Ireland should have their situation assessed by Chartered Tax Advisers such as Blue Star Accountants. Our accountants are fully qualified Chartered Tax Advisers, with a deep understanding of the technology and software development industry in Ireland. This means we have the experience to ensure you implement a tax solution that matches your situation, and we can manage the company’s financial operations for a very reasonable monthly fee. We can also set you up with a company bank account, and deliver free online accounting software.

If you suspect that you might be open to an audit by the Revenue Commissioners, we can also assess your situation and give you advice on what you should do.

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To learn more about our solutions, contact us by phone on 353 (0)1 5415450 or fill in this quick and simple form and we'll get back to you within 24 hours.