Comments on: Tax Injustice: Sole Traders in Ireland http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/ Random ramblings from a freelance web developer in Dublin, Ireland Wed, 10 Mar 2010 18:57:48 +0000 hourly 1 By: janine http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-125710 janine Mon, 01 Feb 2010 20:33:42 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-125710 Hi Ambrand, Thanks for dropping by. Surely you only have to pay class S PRSI on the self employed income though? While it's nice that class A PRSI gets you a few perks, the idea of PRSI is to fund the social welfare system - it's just another tax, and so it makes sense that you have to pay PRSI on all your income. I'd just be glad that you're getting your class A perks - there is a lot to be said for staying PAYE and working on the side for as long as you can. It's a cold world out there social welfare wise once you leave PAYE behind! :) I still think it would be a big improvement if the self employed at least had the chance to pay a little extra PRSI to match the PAYE rate and get all the benefits of that if they wanted. I think it's only in these recessionary times when more and more find themselves self employed out of necessity, and some of the already self employed are in financial difficulties, that the public are becoming more aware of how the self employed get next to nothing out of the social welfare system here. Maybe with more awareness, it will be of more interest to voters. But with so little in the government coffers, I don't expect to see any change any time soon! Enough moaning from me. Despite all the tax/social welfare drawbacks, I'm really glad I'm freelancing and feel fortunate that I'm still here after over 3 years now - touch wood! :) Hi Ambrand,
Thanks for dropping by. Surely you only have to pay class S PRSI on the self employed income though?

While it’s nice that class A PRSI gets you a few perks, the idea of PRSI is to fund the social welfare system – it’s just another tax, and so it makes sense that you have to pay PRSI on all your income.

I’d just be glad that you’re getting your class A perks – there is a lot to be said for staying PAYE and working on the side for as long as you can. It’s a cold world out there social welfare wise once you leave PAYE behind! :)

I still think it would be a big improvement if the self employed at least had the chance to pay a little extra PRSI to match the PAYE rate and get all the benefits of that if they wanted.

I think it’s only in these recessionary times when more and more find themselves self employed out of necessity, and some of the already self employed are in financial difficulties, that the public are becoming more aware of how the self employed get next to nothing out of the social welfare system here. Maybe with more awareness, it will be of more interest to voters. But with so little in the government coffers, I don’t expect to see any change any time soon!

Enough moaning from me. Despite all the tax/social welfare drawbacks, I’m really glad I’m freelancing and feel fortunate that I’m still here after over 3 years now – touch wood! :)

]]> By: Ambrand.com http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-125525 Ambrand.com Fri, 29 Jan 2010 15:58:33 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-125525 I see another problem in the system... If you aremain a PAYE employee with some sole trader in come on the side your employer will be paying a Class A PRSI contribution for you (that is great) but as a sole trader you will have to pay a Class S contribution also. Now as you know a Class S contribution is near useless at the best of times, but its duplicaiton for you because your Class A already covers everything. I see another problem in the system… If you aremain a PAYE employee with some sole trader in come on the side your employer will be paying a Class A PRSI contribution for you (that is great) but as a sole trader you will have to pay a Class S contribution also.

Now as you know a Class S contribution is near useless at the best of times, but its duplicaiton for you because your Class A already covers everything.

]]> By: Una http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-61625 Una Mon, 07 Jul 2008 09:45:09 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-61625 allo allo Ms. Janine... I just started up as a self-employed musician a year ago. I'm trying to figure out my tax situation right now, and it's *really* good to hear another self-employed creative cailin discussing it! (There are very few of us out there.) Love the blog...will stop deviating and get back to revenue.ie now, but thanks for the human touch in my dark morning of accountancy. :) U allo allo Ms. Janine…

I just started up as a self-employed musician a year ago. I’m trying to figure out my tax situation right now, and it’s *really* good to hear another self-employed creative cailin discussing it! (There are very few of us out there.) Love the blog…will stop deviating and get back to revenue.ie now, but thanks for the human touch in my dark morning of accountancy. :)

U

]]> By: Sarah http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-48486 Sarah Thu, 29 May 2008 13:55:03 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-48486 I've recently started contracting as a sole trader can u give me more info ?? any other expenses i should be claiming for etc. I’ve recently started contracting as a sole trader can u give me more info ?? any other expenses i should be claiming for etc.

]]> By: janine http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-15808 janine Tue, 08 Jan 2008 10:29:07 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-15808 Hi Paddy, self employed people are only supposed to claim expenses that are exclusively business related too. I hear what you are saying, and of course there is abuse there, but why should people who follow the rules be penalised? I have very few expenses I can claim and I can only claim 20% of the cost of anything business related back. Therefore, I would need to have 9000 expenses in a year to get the same benefit of tax credit that a PAYE worker gets. When your turnover is low, you keep expenses to a minimum. As for insurance, self employed people pay 3% PRSI and most pay a 2% health levy, totalling 5%. PAYE workers pay 6%, but get a lot more benefits for that. Personally, I wish I could pay the extra 1% and at least get some useful benefits e.g. I would be able to avail of a free dental check up and cleaning every 6 months if I was a PAYE worker. Hi Paddy, self employed people are only supposed to claim expenses that are exclusively business related too. I hear what you are saying, and of course there is abuse there, but why should people who follow the rules be penalised? I have very few expenses I can claim and I can only claim 20% of the cost of anything business related back. Therefore, I would need to have 9000 expenses in a year to get the same benefit of tax credit that a PAYE worker gets. When your turnover is low, you keep expenses to a minimum. As for insurance, self employed people pay 3% PRSI and most pay a 2% health levy, totalling 5%. PAYE workers pay 6%, but get a lot more benefits for that. Personally, I wish I could pay the extra 1% and at least get some useful benefits e.g. I would be able to avail of a free dental check up and cleaning every 6 months if I was a PAYE worker.

]]> By: pADDY mURPHY http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-15299 pADDY mURPHY Thu, 03 Jan 2008 00:45:50 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-15299 Ah please - remember you can claim lots of expenses as a self employed - such as Uniforms - give yourself a uniform which is defined somewhere (with or without a motif) and your cleaning bills are covered,so are professional meetings and memberships, Lease yourself your own car / or claim for travel keep receipts and claim for anything such as fuel and insurance which is for work like your PC - it doesnt have to meet the same standards of test as PAYE workers of "Completely and exclusively required for work" and of course your accountants fee to help you claw back even more! and do you still have the lower rates of National insurance over there ? Ah please – remember you can claim lots of expenses as a self employed – such as Uniforms – give yourself a uniform which is defined somewhere (with or without a motif) and your cleaning bills are covered,so are professional meetings and memberships, Lease yourself your own car / or claim for travel keep receipts and claim for anything such as fuel and insurance which is for work like your PC – it doesnt have to meet the same standards of test as PAYE workers of “Completely and exclusively required for work” and of course your accountants fee to help you claw back even more!
and do you still have the lower rates of National insurance over there ?

]]> By: janine http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-13186 janine Mon, 10 Dec 2007 19:06:04 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-13186 Thanks for the sympathy Justin! ;) Fox girl, you were right as usual - the budget was a bit of a non event. Now the poor self-employed grafters are 80 euro more worse off than the equivalent PAYE person, but it could have been a lot worse. Thanks for the sympathy Justin! ;) Fox girl, you were right as usual – the budget was a bit of a non event. Now the poor self-employed grafters are 80 euro more worse off than the equivalent PAYE person, but it could have been a lot worse.

]]> By: Justin http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-12496 Justin Tue, 27 Nov 2007 10:27:10 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-12496 Good to see wysiw.....I mean Homespun back in the Blogosphere! "why does the Irish tax system make self-employed people pay considerably more tax than a PAYE worker with equivalent income?" - cause they think you are pocketing a lot more than u declare....just like they are ;) Good to see wysiw…..I mean Homespun back in the Blogosphere!

“why does the Irish tax system make self-employed people pay considerably more tax than a PAYE worker with equivalent income?”

- cause they think you are pocketing a lot more than u declare….just like they are ;)

]]> By: thegirlwhosafraidoffoxes http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/comment-page-1/#comment-12416 thegirlwhosafraidoffoxes Sun, 25 Nov 2007 16:19:50 +0000 http://www.janinedalton.com/blog/archives/2007/tax-injustice-sole-traders-in-ireland/#comment-12416 It is unlikely that there will be any tax changes in Budget 2008 tbh - it will probably be minimal all round! It is unlikely that there will be any tax changes in Budget 2008 tbh – it will probably be minimal all round!

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