Start your Own Business (SYOB) Relief & Back to Work Enterprise Allowance (BTWEA)

An incentive for individuals who have been long term unemployed (for at least 15 months) prior to starting their own business will provide a two year exemption from the charge to income tax subject to a maximum of €40,000 income per annum. The scheme runs from 25 October 2013 to 31 December 2016.

If you are unemployed and in receipt of jobseekers benefit/allowance and have a business idea you want to pursue now is your time!

The following restrictions apply:

  • The business must be set up between 25 October 2013 and 31 December 2016 by a person that qualifies for the relief
  • It must be a new business and not a business that is bought or otherwise acquired
  • It must be unincorporated, that is, not a company

The SYOB relief applies only to income tax, the relief does not extend to USC and PRSI.

The Back to Work Enterprise Allowance (BTWEA) scheme allows an individual to keep a portion of his or her social welfare payments for a period of two years. These payments are not taxable. An individual may make a claim under both the Back to Work Enterprise Allowance scheme and the Start Your Own Business initiative. While the conditions for both schemes are similar, they are independent of each other.

Home Renovation Incentive Scheme

Revenue introduced a Home Renovation Incentive Scheme which runs from 1 January 2014 to 31 December 2015. The scheme provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000(exclusive of VAT) which would attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT), a maximum credit of €4,050 will apply. The credit is given over two years following the year in which the work is carried out.

Homeowners must be LPT compliant in order to qualify for the relief while building contractors must be tax compliant to carry out the works.

Revenue Issues Guidelines on Maintaining Register of Employees

An employer must keep and maintain a Register of Employees at the normal place of employment for all employees (either full/part time, casual, temporary).

Details to be included are:

  • Name, address and PPS number of each employee;
  • Date of commencement of employment of each employee;
  • Where relevant, date of cessation of employment of each employee;

The register may be in manual or electronic format. Where a register is not maintained by an employer, penalties of up to €4,000 may be imposed. An employer may be requested to produce the register when Revenue visit a business or in a Revenue audit or investigation situation.

Call us today if you want additional information in relation to any of the above or you require any other business or financial assistance.