Who can avail of the Business Start Up Relief for individuals?
In Budget 2014 the Minister for Finance announced a new relief targeted at encouraging long term unemployed to set up new businesses. We have provided below a quick synopsis of how the scheme works but you can obtain more detailed information on the Irish tax office website.
What is the relief?
This is a relief aimed at individuals who have been out of work for at least 12 months, and will allow them to earn €40,000 in profits p.a. in the first two years of trading without paying Income Tax (USC and PRSI will be payable). The relief will apply by way of a deduction from trading profits.
Who can apply?
The relief applies to an individual who commences a new business between 25 October 2013 and end of December 2016 and who has been continuously unemployed for a period of 12 months immediately preceding the commencement of the business and during that period you were in receipt of any of the following
- crediting contributions
- jobseeker’s allowance
- jobseeker’s benefit
- the one-parent family payment
- partial capacity payment
How do I apply?
There is no pre-approval required here and you just complete a section in the tax return. Self Employed people are required to complete their tax return every October for the previous calendar year.
If you have any queries regarding the above, OMB, Chartered Accountants would be happy to discuss this article relevant to your situation.
