Self-employed tax take may fall by 30%

THE self-employed tax take could be down as much as 30% this year resulting in a significant shortfall for the exchequer.

The Association of Chartered Certified Accountants (ACCA) said the reduced tax yield will also be repeated in 2010, as the Minister for Finance is faced with at least two years of reduced income tax yield. In a sample of self employed tax returns, ACCA practising members reported that on average their clients’ profits are substantially lower in 2009 meaning their tax bill is also lower.

Reductions of an average of 50% were even reported in some practices.