The Consultative Committee of Accountancy Bodies (an umbrella group for the accountancy profession in Ireland),has, in its pre budget submission called for an end to discrimination against the self employed in the tax system. Among the suggestions made is a proposal for a phased introduction of a self employed tax credit and the abolition of the 3% USC levy on self employed income over €100,000.
The submission makes the point that it is perverse for the self employed to be subject to harsher tax treatment than employed individuals. This effects all those who are self employed, no matter how modest their income. They don't receive the PAYE tax credit, which adds an additional €1,650 pa to their tax bill, and are also penalised with the USC levy if they earn over €100,000.
As the submission says, this is both deeply unfair and seems to be without any particular basis. The self employed sector makes a strong contribution to the economy and continues to show high levels of compliance. Here's hoping that the submission will have an impact.
Date Added: 08 Sep 2015