Business Start Up Relief for Long Term Unemployed

This is a relief aimed at persons who have been out of work for at least 12 months, and will allow them to earn €40,000 in profits p.a. in the first two years of trading without paying Income Tax. The relief will apply by way of a deduction from trading profits.

The relief applies to an individual who commences a new business and who has been

• continuously unemployed for a period of 12 months immediately preceding the commencement of the business and in respect of that period of unemployment was entitled to crediting contributions within the meaning of Section 33 of The Social Welfare Consolidation Act 2005; or

• in respect of a continuous period of unemployment of not less than 312 days immediately preceding the commencement of the business, has been in receipt of jobseeker’s benefit, jobseeker’s allowance or a one-parent family credit,

 and who was not previously a qualifying individual for the purposes of this relief.

This will apply for the first 24 months of trading, so that it will be necessary to apportion the relief where this does not match the tax year. A new business will mean a business commenced by the qualifying individual during the period beginning on 1 January 2014 and ending on 31 December 2016, but will exclude any trade:

• which was previously carried on by another person and to which the qualifying individual has succeeded; or
• the activities of which were previously carried on as part of another person’s trade or profession.

Contact your OSK Tax Advisor for further information on Business Start Up Relief for long term unemployed.