Revenue guidance has left the taxation of locums in such professions as GP’s, Pharmacists, Dentists and Vets confused as to what their taxable status is. The central issue is whether Revenue view locums as being employed or self-employed. Revenue has stated that they will determine each locum’s taxable status on a case by case basis. However should a locum be deemed to be employed, an assessment could be raised on the employer for unpaid taxes such as Employers PRSI. Revenue has stated that a contract stating that the locum is self-employed will not necessarily exempt the locum from being deemed an employee. Revenue will look behind the contract to see if the actual work practices determine the locum to be self-employed. They will look at such issues as whether the locum holds their own licence and professional insurance and whether or not they are entitled to holiday pay. Revenue appealed to Practitioners to regularise their affairs without the imposition of penalties when submitting the P35 for the year ended 31 December 2010 in February 2011. Practitioners, who have not done so, should seek professional advice immediately to avoid interest and penalties in the future.