If you are self-employed and considering applying for social housing in Ireland, then there is a costly hurdle you need to be aware of and be able to navigate.
Among the numerous requirements set out by the housing authority for those self-employed, you will need to provide at least 2 years’ accounts with an auditor’s report, and a notice of assessment and/or a self-assessment acknowledgement letter for the previous 12 months.
Getting you businesses financial statements audited is an extremely costly and time intensive requirement, especially when 2 financial periods need to be audited. I have personally worked as an auditor for a number of years and the process is painstaking for businesses and not something you can turnaround and do at short notice.
I recently had a conversation with an individual based in county Meath that was in a very difficult position. He was operating as a sole trader and had been getting an accountant to prepare a set of certified financial statements for him. His income from this business was very modest – €20k per annum before expenses and taxes are taken into account.
When it came time to reassess his income to see if he is still eligible for social housing, he now had to try to do a quick turnaround to get his previous accounts audited.
But unfortunately he did not have the appropriate notice, or the funds to pay for such audit fees which can run into the thousand and take a number of weeks to complete, leaving him at risk of losing his home.
A Big Disadvantage for Those Self-Employed
This additional cost is a major disadvantage for those who are self-employed in Ireland. In Meath Cllr Maria White correctly noted that “someone who can afford to have audited accounts would not need social housing”.
Sinn Fein TD Darren O’Rouke has also raised this point with the Minster for Housing James Brown in recent times. The Minister’s response was that “A degree of discretion is permitted to the local authorities as to the extent of documentation the authority deems necessary to ascertain a household’s average income over the preceding 12 months in order to satisfy themselves of the household’s true income pattern.”
This gives some hope to those in a difficult situation that – with a bit of political pressure you may be able to get around it.
If this regulation isn’t amended in the near future it is likely to continue to push households to move their income to the shadow economy, unlike the gentleman who I spoke to recently who is being punished for correctly reporting all of his income.
Disclaimer: This blog post is for informational and educational purposes only and should not be construed as financial advice.