Start Your Own Business Relief: Who Qualifies and What You Get
Learn how to qualify for income tax exemptions if you start a new business after a period of unemployment in Ireland.
This scheme offers a tax break to individuals who transition from being unemployed to running their own business. It is designed to support people moving into self-employment by providing a period of relief from specific taxes.
Who it's for
You may qualify for this relief if you were unemployed for a continuous period of 12 months immediately before you started operating your new business. This period of unemployment serves as the qualifying timeframe to move from being a jobseeker to a business owner.
What you get
If you meet the eligibility requirements, you can receive an exemption from income tax for a period of up to two years. This relief is intended to help ease the financial transition into self-employment by reducing the amount of tax you owe on your business earnings during those initial years.
What it costs you
To be eligible for this support, you must have been in receipt of Jobseeker's Benefit during your period of unemployment. This means your status as a recipient of these specific social protections is a necessary component of the application process.
The catch to know
The most important thing to understand is that this relief only applies to your income tax. It does not provide any relief or exemption for other mandatory payments, such as PRSI (Pay Related Social Insurance) or USC (Universal Social Charge). You must still account for these other costs in your business planning.
How to apply
- Verify that you have been unemployed for a continuous period of 12 months.
- Confirm that you were officially receiving Jobseeker's Benefit during that time.
- Prepare to manage your income tax, noting that PRSI and USC still apply.
- Contact the Revenue Commissioners to discuss your eligibility and the next steps for claiming the relief.