Start Your Own Business Relief

Budget 2014 introduced a new initiative for sole traders – one that in my opinion was long overdue. This initiative will assist those who have been unemployed for 12 months or longer to set up a new business and be exempt from Income Tax for 2 years.

If during the period prior to setting up your business you were in receipt of:

·         Crediting contributions

·         Jobseekers allowance or benefit

·         One parent family payment

·         Partial capacity payment

then you may be eligible for this scheme. Also, if you spent time on certain training courses or schemes these will be treated as part of a period of unemployment. Examples include FÁS courses or Community Employment Schemes.

The scheme runs from 25th October 2013 to 31st December 2016. The maximum exemption allowable per annum is €40,000. In order to qualify also the business must be brand new i.e. not bought, inherited or acquired by other means.

The claim will be made in the relevant section of your annual Income Tax return and does not need pre-approval.

http://www.revenue.ie/en/tax/it/reliefs/own-business-scheme/index.html provides details examples and further guidance on this scheme.