Whistle Blower is 100% correct. The rules governing what is a contract of services (employee) and a contract for services (self employed contractor) is pretty clear cut. The concept of direction and control are crucial and there is no doubt that all of the pilots are under the direct control and direction of Ryanair.
While the UK and Irish tax authorities could easily prove that the pilot is an employee the problem is who is the employer, Ryanair or BRK? If the UK authorities decide that they will invest time and effort in pursuing BRK. They make a ruling, BRK appeals it and even if the Inland Revenue win then BRK just need to show that Ryanair is the employer and not BRK. Ryanair decide on the roster, Ryaniar decide who to hire, Ryanair decide on the competency levels etc. Therefore Ryanair are the employer and all of the pilots should be taxed in Ireland.
The Inland Revenue then have to justify its pursuit of BRK and the cost of going to court in return for lining the pockets ofg the Irish tax office.
Likewise the Irish tax authorities knock on the Ryaniar door and tell them that all of the contractor pilots are under their control and direction and therefore are employees and that they need to start deducting tax from them.
Same problem, Irish tax office head into court, ultimately win their case and then Ryanair tell them that the pilots are actually leased from Brookfield and that they are employees of BRK and then the tax must be dedcuted from the pilots salary and paid to the UK government.
The risks currently outweigh the potential rewards for the tax authorities on both sides of the Irish sea. From the horses mounth in the Irish tax office I have heard that they have decided to let the sleeping dog of contractors lie and in return they have insisted that BRK ensure that each contractor is registered for, and paying tax.
Where the risk comes for pilots is in doing nothing and waiting for either a union or tax office to come riding to their assitance and gettign BRK to pay their taxes. I would expect that both the irish and UK tax authorities will get a list of pilots from BRK and then they will, like father christmas, check the list and see who's been naughty by not filing any taxes and who has been nice and paid something somewhere to someone.
The message from the Irish tax office is to get yourself registered, pay your taxes and if you are from outside Ireland then you will not have a very big tax liability.
In most other sectors self employed people only get paid when they produce evidence that their taxes are in order. This is the way it was doen when I was down under on contract and it makes so much sense it can only be a matter of time before it is adopted by the tax offices up here.