[Ireland] Majority of taxpayers supports ending self-assessment tax system for self-employed

A significant majority of taxpayers would support abolishing the self-assessed tax system for the self-employed, in favour of the easier PAYE process, Irish Examiner reports.

Released ahead of this week’s self-assessed pay and file deadline on November 17, a new survey reveals 85 per cent of people were supportive of measures that would make tax compliance considerably easier to manage for the self-employed.

Barry Cahill of Taxback.com - the company that carried out the survey of 2,000 taxpayers - said it showed overwhelming support for an overhaul of the self-assessed tax system to create a pay-as-you-go type model. 

"Previous surveys we’ve conducted have had a similarly robust response to such a proposal, so there’s very much a call among taxpayers to the powers that be to implement changes that would make tax compliance a lot easier to manage for the self-employed," he said.

"With the ROS deadline fast approaching there are hundreds if not thousands of business owners throughout the country scrambling to get their affairs in order or face fines and penalties for missing the deadline. 

With so much on your plate as a small business owner, it can be easy to fall behind or lose track of where you are in terms of your accounting, and the survey indicates clearly that a pay-as-you-go system would be a big help for many.”

The same survey asked for views on setting up a company and found that a third of respondents would consider setting up their own business while a further 27 per cent said it was unlikely they ever would.

The most recent CSO figures indicate that there were 306,600 people classified as self-employed in Ireland, a slight decline from 2020’s figure of 325,800.

"Irish people are a nation of entrepreneurs and self-starters, which is why the self-employed and their endeavours are the backbone of the Irish economy throughout the country," Mr Cahill said.

"So, it’s unsurprising that the overall majority (58%) of survey participants said they would be attracted to the proposition of being their own boss. However, just 31% say there is some likelihood in making this dream a reality, while 27% concede that while they would consider it, they probably won’t make it happen.

"That so many would be into the idea of self-employment is an interesting finding, perhaps due to the much wider range of opportunities and instances now for self-employment, aided hugely by advanced e-commerce and, particularly, social media platforms."

A significant majority of taxpayers would support abolishing the self-assessed tax system for the self-employed, in favour of the easier PAYE process, Irish Examiner reports.

Released ahead of this week’s self-assessed pay and file deadline on November 17, a new survey reveals 85 per cent of people were supportive of measures that would make tax compliance considerably easier to manage for the self-employed.

Barry Cahill of Taxback.com - the company that carried out the survey of 2,000 taxpayers - said it showed overwhelming support for an overhaul of the self-assessed tax system to create a pay-as-you-go type model. 

"Previous surveys we’ve conducted have had a similarly robust response to such a proposal, so there’s very much a call among taxpayers to the powers that be to implement changes that would make tax compliance a lot easier to manage for the self-employed," he said.

"With the ROS deadline fast approaching there are hundreds if not thousands of business owners throughout the country scrambling to get their affairs in order or face fines and penalties for missing the deadline. 

With so much on your plate as a small business owner, it can be easy to fall behind or lose track of where you are in terms of your accounting, and the survey indicates clearly that a pay-as-you-go system would be a big help for many.”

The same survey asked for views on setting up a company and found that a third of respondents would consider setting up their own business while a further 27 per cent said it was unlikely they ever would.

The most recent CSO figures indicate that there were 306,600 people classified as self-employed in Ireland, a slight decline from 2020’s figure of 325,800.

"Irish people are a nation of entrepreneurs and self-starters, which is why the self-employed and their endeavours are the backbone of the Irish economy throughout the country," Mr Cahill said.

"So, it’s unsurprising that the overall majority (58%) of survey participants said they would be attracted to the proposition of being their own boss. However, just 31% say there is some likelihood in making this dream a reality, while 27% concede that while they would consider it, they probably won’t make it happen.

"That so many would be into the idea of self-employment is an interesting finding, perhaps due to the much wider range of opportunities and instances now for self-employment, aided hugely by advanced e-commerce and, particularly, social media platforms."