Start your own business relief
If you are long-term unemployed, you may be able to claim tax relief to start your own business. To qualify, you must have been unemployed for at least 12 months before you start the business.
The Start your own Business Relief allows you to claim an Income Tax (IT) relief of up to €40,000 per year. You can claim this relief for a maximum of two years. The scheme ran from 25 October 2013 to 31 December 2018.
You can only claim this relief once.
You may qualify for this relief if you have been unemployed for 12 months or more. During those 12 months, you must have received one of the following as set out on the Department of Employment Affairs and Social Protection (DEASP) website:
- Crediting PRSI Contributions
- Jobseeker’s Allowance
- Jobseeker’s Benefit
- One Parent Family Payment
- Partial Capacity Payment.
Are there any restrictions for your business?
If you qualify for this relief, there are certain restrictions. You must have set up your business between 25 October 2013 and 31 December 2018. It must be:
- set up by you
- a new business and not one that is bought, inherited or otherwise acquired
- unincorporated, that is, it must not be registered as a company.
If you set up a new company to carry on a new business, you should consider whether the relief from Corporation Tax for start-up companies is relevant.
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie