Start Your Own Business Relief.
If you have been unemployed for at least 12 months and set up a qualifying business, the Start Your Own Business scheme provides an exemption from income tax up to a maximum of €40,000 per annum for a period of 2 years.
Start Your Own Business Relief only applies to income tax payable on the profits from your business. It does not extend to PRSI and Universal Social Charge (USC) so you will be liable to pay PRSI and USC on any profits earned in your new business. The Start Your Own Business scheme runs from 25 October 2013 to 31 December 2018.You may qualify for this relief if you have been unemployed and getting any (or a combination) of the following for 12 months or more:
- Jobseeker’s Allowance
- Jobseeker’s Benefit
- One-Parent Family Payment
- Partial Capacity Payment
- Credited contributions
If you have spent time on certain training or on employment schemes this period will be treated as part of a period of unemployment. Examples of training courses and schemes include Further Education and Training (FET) courses, Community Employment, and the Back to Education Scheme.
If you took up employment for a period but lost your job and returned to your jobseeker’s payment you can qualify (provided the two jobseeker claims are not separated by more than 12 months and your total claim is more than 12 months).
If you work part-time and claim a jobseeker’s payment for the other days you can qualify for the Start Your Own Business Relief once you have been getting a jobseeker’s payment for 312 days of unemployment.
To Read more go to menu and click on Sole Trader Set Up)