A: It is widely expected that next week’s Budget will announce a new tax credit for the self-employed to match the employee credit of €1,650. Finance Minister Michael Noonan has said he will begin to extend the credit worth €1,650 to the self-employed and farmers, but it is expected this will be done so over five years.
This means if you are self-employed you will see a reduction in your year-end tax bill of €330, i.e. 1/5th of the credit.
This will bring equality between the self-employed and individuals working in PAYE employment. It is hoped this credit will also create an additional incentive for more entrepreneurs and start up sole traders in Ireland.
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