The deadline for payment of the Local Property Tax (LPT) is approaching and self-employed contractors who fail to submit the return on time could face serious consequences in relation to their Income Tax.

Self-employed workers who fail to pay the LPT on time will be deemed not to have filed their income tax returns on time. This could lead to penalties/surcharges being applied to their income tax return.

In addition, Revenue will not issue a tax clearance certificate where there is unpaid LPT. The individual will not therefore be able to tender for business where a tax clearance certificate is required.

Whilst it had been made clear that Revenue would do everything within their powers to ensure compliance with the new Property Tax, this is another example of the self-employed being treated unfairly by the tax and social welfare system;

• Self-employed contractors provide their services through Limited Companies, and pay tax under the PAYE system on salaries drawn from the company. As they are self-employed they do not however qualify for the PAYE tax credit.
• Proprietary Directors and Self-employed workers do not qualify for jobseekers benefits when they are out of work, despite paying both PRSI and USC on their income.  

The self-employed have a significant contribution to make to the future growth of Ireland’s economy. It’s time to give them the support they deserve and address the inequity within the tax and social welfare system.

Filed under: Uncategorized by Prima
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