Revenue E-Brief

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Revenue E-Brief Issue 08/2011, 07th February 2011

Taxation of Doctors engaged by General Practitioners (GPS) and Form P35 Filing Deadline

During 2010, Revenue conducted a review of the tax treatment of doctors engaged by GPs on a part-time, temporary or non-permanent basis. These doctors are colloquially known as “locums”. The review undertaken was to provide assurance to Revenue that payments to these doctors by GP practices are being treated correctly for tax purposes.

A reminder has issued to most general practitioners of the forthcoming deadline of 15 February 2011 to regularise their 2009 position, if appropriate, without the imposition of penalties. (General Practitioners in the South West Region and in the Kildare District were not included in this reminder letter as they have already been contacted locally).

In summary, where doctors were engaged by a practice in 2009 and the PAYE system was not applied to the payments, this must be rectified by submitting a supplementary Form P35 to the Office of the Collector General using the self-correction rules as set out in Chapter 2.2 of the Code of Practice for Revenue Audit. The form must include a computation of the correct tax, PRSI, levies and statutory interest payable together with the payment due. For 2010, any additional tax, PRSI and levies accrued on foot of payments to doctors engaged must also be remitted to Revenue through the 2010 Form P35.