Finance Minister Michael Noonan is expected to reduce the universal social charge rate for self-employed people and entrepreneurs in Budget 2016.
Budget 2016 - the universal social charge rate expected to be reduced
Self-employed people currently pay 3% more USC on earnings over €100,000 than PAYE workers earning the same amount. The higher rate has been heavily criticised for stifling entrepreneurial activity in Ireland.
This follows recent confirmation that the USC rate for PAYE workers will be cut, giving pay packets a small but welcome boost.
Next month’s Budget is also expected to introduce tax credits for the self-employed in a bid to incentivise people to start their own businesses.
Over the next few weeks we’ll see a marked increase in Budget 2016 rumours and leaks so we’ll continue to keep you updated.
Budget 16 offers a fresh opportunity to look at your taxes. Find out if you're due a refund and get a free estimate calculating your tax.
See the changes in Budget 2016 here.