I am informed by the Revenue Commissioners that for income tax purposes, ESB meter readers are regarded as employees under a contract of service and their earnings are subject to tax under the PAYE system.
The treatment of meter readers for social insurance purposes is governed by the Social Welfare Acts. I understand that the Department of Social, Community and Family Affairs regards the meter readers to be in insurable self-employment for the purposes of the Social Welfare Acts. Such determinations are not formally binding on Revenue.
The Revenue determination of the tax status of the meter readers has also been upheld by the appeal commissioners. The ESB altered its contracts with meter readers in 1995 and the Revenue Commissioners examined the new contracts in order to determine whether the status of the meter readers had changed for the purposes of tax law. The result of the examination was that the new contracts did not change the meter readers' tax status in that they continued to be engaged under a contract of service and, as a consequence, should remain within the scope of the PAYE system.
I understand that following discussions with the ESB and taking the Department of Social, Community and Family Affairs decisions into account, Revenue reached an agreement with the ESB which, by concession and subject to certain conditions, including conditions regarding withholding of tax by the ESB, treats the meter readers as self-employed.