Revenue Publishes New Guidance On Employee Misclassification Cases

The Revenue Commissioners have issued a new guidance note offering employers a final opportunity to address misclassification issues following the Supreme Court decision in The Revenue Commissioners v Karshan (Midlands) Ltd. Trading as Domino's Pizza. Employers can make disclosures and enter into a settlement agreement with Revenue to rectify such issues. If Revenue accepts the misclassification disclosure, no additional interest, fixed penalties, or tax-geared penalties will be imposed beyond the underlying tax liability. However, any misclassification errors for the 2024 and 2025 tax years must be genuine, bona fide mistakes. Employers wishing to make disclosures can do so via the My Enquiries function on the Revenue Online Service, with the deadline for settlement applications set for 30 January 2026.