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SELF-EMPLOYED PEOPLE are having growing problems with debt, accessing credit and paying off loans and mortgages, a new report shows.
Hard Times for the Self-Employed: The Citizens Information and MABS Experience was published by the Citizens Information Board today and launched by the Minister for Social Protection, Joan Burton TD.
It shows that Citizens Information Services are seeing more people using their services, while MABS is reporting growing problems of indebtedness among the self-employed.
Some of the key areas of concern include:
Assessing the means of self-employed people can be complex, so the report suggests that an additional mechanism for establishing means for JA is required.
Minister for Social Protection Joan Burton TD said she recognises “that self-employed people make a great contribution to the economy” and also recognises “that the current economic situation has been difficult for self-employed people”.
However, any measure to provide short-term benefits to those who are self-employed would have significant financial implications and would have to be considered within a budgetary context. An actuarial review of the Social Insurance Fund is currently underway and is expected to be completed by July 2012.
Gerry Dowling, MABS Co-ordinator, Dundrum/Rathfarnham noted that 16 per cent of new clients to his service in 2011 were self-employed, compared to 10 per cent in 2010 and 4 per cent in previous years. He said a significant debt issue is inability to keep up mortgage payments.
Not all self-employed people are captains of industry. Many are cleaners, gardeners, taxi drivers and tradespeople who are applying skill and abilities to earn a living. In the current climate they now find their income potential eroded. However, they are in a ’Catch 22′ situation where they need to continue to trade to provide cash for basic personal and family needs but in reality are trading more deeply into debt.
Dowling acknowledged the contribution of the newly formed CAVA (Chartered Accountants Voluntary Assistance) scheme which provides advice in business-related cases and has proved to be an invaluable referral service for both CISs and MABS.
Selfemployedsupports.ie is a microsite aimed at self-employed people who have seen a drop off in business and income during the downturn. Copies of the report Hard Times for the Self-employed: Citizens Information and MABS Experience are available online or by calling the Citizens Information Board on 01 605 9000 or emailing info@ciboard.ie.
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So self employed people who pay their levies, taxes and social insurances are not entitled to any benefits? Seriously……
Yep, only if they qualify under means testing.
Yup, that’s about the size of it alright.. The only time being self employed has any advantages is if your business is booming.. Other than that it’s not a pleasant place to be..
Its not even that. Even if things are ok, you are discriminated against by banks, building societies, etc. The world operates on the assumption that are employed by an employer. The banks are full of dumbos who just cannot conceive what that means.
The sickener is that even if you can afford to save, you are punished for doing so, as any savings above 20k are counted as “means.”
Report: Blindingly obvious statement makes a headline. It’s been like this since 2008.
Many people on the dole would try to open there own business if the Government protected the self- employed a lot better
People on the dole can start a business and stay on the dole for two years I think.
It’s called Back to Work Enterprise Allowance (BTWEA). You retain full dole for the first year and then 75% the next year. Then you’re cut off.
They also count your business as starting on the date of application not when they finally get in touch to give you the go ahead. That wasted 3 months for me.. I was told by my facilitator not to work until I got that letter, if you work while claiming the dole or disability you’re committing fraud so why they don’t start your 2 years when they are changing the code on your payment is beyond me.. I found out after 9 months working that my payments were going down to 75%, when I had accounted for them to change a year after I started work, it mucked up a couple of things at the time.. So be warned!!
Whats worse, if you ever decide to leave the world of pain that is self-employment, every job posting looks perfect for you. Must be self-starter, motivated, confident, even entrepreneurial but when you go for the interview it turns out they want somebody who never self started as much as a lawn-mower and they believe that as you were self-employed you are unemployable and will always be prospecting for a chance to return to the 16 hour days and being last to get paid world of self-employment.
But we keep looking, there is enlightened employers out there!
It is absolutely a disgrace. A lot of self employed started out on their own when made redundant.They started off their business instead of going on the live register and should be praised instead of abandoned My own son started out on his own rather than go on the dole he pays all taxes and vat and whatever is due and yet he has got no support from anyone he cannot get a loan for his business or an overdraft because he is self employed not because of bad credit just because he is self employed DISGRACEFUL
You are correct, also many of us are now being forced to be “self employed” because employers want contractors so they can evade employment law. It is making lots of money for accountants and umbrella operators and became we are VAT liable we actually are double-taxed. Yet we still get nothing for it. I want to know what the 23% extortion my clients pay in VAT entitles me to, on top of my other taxes: nothing.
I haven’t paid myself for a few months now, lucklily the wife is public sector ;-)
Reg, i do hope things get better for you … and you have a good partner looking after you, which is definitely better than a lot of those impacted. I know my sisters husbands business went to the wall 3 years ago … She wasn’t working at the time. They were entitled to nothing… She ended up cleaning houses for Cash, which is against the law, but she needed to get money to feed her 2 children. It is disgusting that the people who try hardest in this country, get the least back, when things break down… A lot of the businesses failed, because the banks refused to give overdrafts or loan extensions.. which is exactly what happened my brother-in-law. The same thing is happening today. Every year, for the last 5 years, the Government puts out empty statements saying they are forcing the banks to open credit lines for businesses etc, and every year, more and more businesses are failing, because the Banks are telling cash strapped businesses that they cant get access to credit to buy stock, pay suppliers etc… Its just plain wrong.
Thanks for the support Cal and sorry to hear about your brother-in-laws business, I hope things improve for them.
You got to love this one ….
“However, any measure to provide short-term benefits to those who are self-employed would have significant financial implications and would have to be considered within a budgetary context. An actuarial review of the Social Insurance Fund is currently underway and is expected to be completed by July 2012.”
This crowd protecting 400k a year salary for a puppet Taoiseach, 340k a year for a puppet Tanaiste, over 200k per year for some of the minsters, never mind advisers breaching salary caps … and the governments statement sys… let me requote “benefits to those who are self-employed would have significant financial implications”
If you read this about any other country in the world, you would say that its a corrupt dictatorship, led my uncaring facsists.
Yeah Cal the “significant financial implications” jumped out for me as well. I was listening to Morning Ireland on the way into work were they were discuss some new treatment for skin cancer. Seems the Dept of Health will not sanction the purchase of the treatment as it’s deemed to expensive at €80k.
It seems our government no longer see us as citizens of Ireland but as units of cost.
I do see their logic …. every penny spent helping someone else, is directly impacting their potential salaries … so protect what you have at all costs.
@kerry blake I heard it was €80k for four injections. I think the drug companies need to get a grip on reality!
That minister must be enjoying his/her €200k a year they lost touch with reality..after 4 years is that the best you can come up with..solve it cos is your bloody job..Simple
The self-employed are doing everything they can to stay in employment but when they ask for a little help from the government they are told to go away.
This issue really needs to be addressed.
“Assessing the means of self-employed people can be complex, so the report suggests that an additional mechanism for establishing means for JA is required.”
In what world does adding another bureaucratic mechanism make the assessment less complex?
been there done that as a sole trader and not a happy place to be when the work dried up you are thrown to the wolves never ever again i took a chance back in the late eighties and had to cease in the late 90s lucky was able to get back on my feet again so i do feel sorry for all those people that were sub contacted out in the boom time and now the work has dried up are been left to fend for themselves ….
That’s me and my father, although while he was there during the boom, I entered at the end of it..
It does royally suck, but I’m hoping something will give.. Either that or I can manage to get out of here..
Hate to say this, but it was always like this for self employed people anyway. Small traders were always exceptionally vulnerable to changes in the business environment. Also they get far less “help” because there is no way to prove or disprove income or they simply are ineligible.
As a forced self employed contractor myself, there are issues that are not income related: for example I am more or less shut out of home ownership because mortgages are difficult to access (yet I’ve never had a higher income and repayments have never been more affordable to me). More basic credit I can’t really answer on, although I’d no problem making some bank account changes a while back.
have your say