The President of ICMSA, Mr. John Comer, has today welcomed the comments made by An Taoiseach, Mr. Enda Kenny that the Government “will also begin the process of equalising the income tax treatment of the employed and the self employed”, an issue that ICMSA has for many years highlighted as being unfair and discriminatory against self employed people including farmers who also have to deal with the issue of very volatile incomes from year to year.
In particular, Mr. Comer said, that ICMSA has long highlighted the serious anomaly in relation to the PAYE tax credit that is not available to self employed people. Indeed, the Commission on Taxation Report recommended that an Earned Income Credit should be introduced for the self-employed similar to the PAYE allowance of €1,650 in order to ensure equal treatment. Under the current tax regime, a self employed person from a tax perspective is €1,650 worse off than a person in PAYE employment and this needs to be addressed as part of any programme to equalize income tax treatment. The proposal from the Commission on Taxation Report would certainly address this anomaly
The announcement today from the Taoiseach is certainly welcome and needs to be followed by concrete actions in the upcoming Budget and the process of equalising the tax treatment completed with an agreed and speedy timeframe, concluded Mr. Comer.
ENDS. 04 March 2015
John Comer is at (087) 2057846