08 Mar 2018 | 12.12 pm
Self-Employed Treated ‘Unfairly’ By Taxman
Taxback guide for self-assessed taxpayers
08 Mar 2018 | 12.12 pm
A survey of taxpayer sentiment by Taxback.com shows that four out of five people believe the self-employed are treated unfairly to some extent in respect of tax obligations and that, of this group, 45% believe the system to be “totally discriminatory”.
The Taxpayer Sentiment Survey 2018 looked at the views of 3,000 taxpayers on Ireland’s tax structure and how it affects the 300,000 and more self-employed.
Taxback has also published an online guide to minimising tax payments and ensuring all allowances and credits are obtained and applied. It’s called the ‘Bullshit-Free Guide to Self-Assessment Taxes in Ireland’ and it’s available from the firm’s website.
The guide provides anyone who needs to file a tax return with an easy-to-access, easy-to-use tax guide, that will enable them to understand how the tax system works, what their obligations are, what reliefs and credits are available, and how they can go about getting them.
Director Barry Flanagan (pictured) said: “According to Census 2016 figures, there are more than 300,000 self-employed people in Ireland,which is circa 17% of the country’s workforce. The way our system is structured now means that if a self-employed person earns over €100,000 a year they pay a higher rate of USC and miss out on the PAYE tax credit. In addition, people on lower incomes who work for themselves are worse off than those PAYE workers on low incomes, as they must pay higher rates of PRSI.
“Obviously, there is some rationale behind this structure, but whether it amounts to a ‘fair and equitable system’ is the source of much debate. And it’s pretty clear from our survey what the general public think.”
Flanagan added that the guide was developed on the back of years of feedback from clients who said they were confused by the system, or others who said they were totally unaware that they needed to file a tax return because they were PAYE employees.
“The numbers of people who fall into the self-assessed tax bracket goes far beyond those who simply work for themselves. Landlords, Airbnb hosts, anyone who earns income from non-PAYE employment, be it from investment properties abroad or from online trading of the now popular crypto-currencies — all of these people are required by law to file a tax return.
“We hope our guide will be an initial reference point for anyone looking to find out more about not only their tax obligations but their tax entitlements too,” said Flanagan.
Established in Dublin in 1996, Taxback.com has 27 offices in Europe, Australasia, the United States and South America, and a staff of more than 940.