150,000 self-employed workers get big gains

THE self-employed have emerged as major gainers from the measures announced.

Those who work for themselves will be able to earn more before paying tax, will get a new entitlement to Jobseeker’s Benefit if they lose their jobs, and have escaped any increase in social insurance contributions.

The changes are set to benefit some 150,000 people, the Dáil was told.

The earned income credit will rise by €200 to €1,350. Basically, this is money a self-employed person can earn before they pay tax.

They also gain from the increase of €750 in the income tax standard rate band for all earners.

This goes from €34,550 to €35,300 for single individuals, and from €43,550 to €44,300 for married one-earner couples.

Changes to the 4.75pc universal social charge rate (USC), which is coming down to 4.5pc, will also benefit those who work for themselves.

Department of Finance figures show that a single self-employed earner on €55,000 will be €452 a year better off from the income tax and USC changes, that take effect from next year.

But tax experts said that those who work for themselves are still worse off by €300 than their PAYE counterparts.

Article Source: http://tinyurl.com/kbwqb42

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