John Lyons
Question:34. Deputy John Lyons asked the Minister for Finance the position regarding the introduction of the start your own business scheme; and if he will make a statement on the matter. [4668/14]
View answerThursday, 30 January 2014
Questions (34)
Written answers
As the Deputy is aware, I announced the Start Your Own Business initiative, which provides an exemption from Income Tax for individuals who have been unemployed for a period of 12 months and who start a new, un-incorporated business between 25 October 2013 and 31 December 2016.
An exemption from Income Tax will be provided on profits up to a maximum of €40,000 per annum for the first two years of trading. However, USC and PRSI will continue to be payable. If a loss is incurred then loss relief will be available in the normal manner.
The business must be un-incorporated i.e., it must not be registered as a company. In order to claim this relief, the individual must file a tax return notwithstanding that there may be no liability to tax.
This initiative is an employment activation measure that provides a much-needed incentive for people to start their own business and to reduce their dependence on welfare payments. Full details of the initiative can be found on the Revenue website at: http://www.revenue.ie/en/tax/it/reliefs/own-business-scheme/index.html.