Entrepreneurs need level playing field to generate jobs, innovation and regional growth
At the National Economic Dialogue in Dublin Castle, the Small Firms Association has (SFA) called on Government to introduce measures in Budget 2018 to encourage entrepreneurship and business formation.
Linda Barry, SFA Acting Director, stated: “We need entrepreneurs and owner-managers to create jobs, drive innovation and boost the vibrancy of our regions. Yet government policy continues to discriminate against the self-employed. The gap between the self-employed Earned Income Tax Credit and the PAYE tax credit means that owner-managers pay more tax than employees on the same income. The Government must honour its commitment to level the playing field by Budget 2018 by increasing the Earned Income Tax Credit to €1650.
“Addressing barriers and disincentives for entrepreneurs and businesses is more important than ever in the context of Brexit, the impact of which is already being felt by small businesses on the ground in terms of postponement of business and investment decisions, loss of business here and in the UK and increased sourcing of raw materials from the UK. That includes addressing two areas where Ireland is completely out of line with the UK. These are:
The introduction of a workable employee share option scheme for small firms to help them to retain employees and attract people with key management skills.
An increase in the lifetime limit for CGT Entrepreneurial Relief from €1mn to €15mn to compete with the UK for mobile investment.”