Start Your Own Business scheme

What is the Start Your Own Business scheme?

If you have been unemployed for at least 12 months and set up a qualifying business, the Start Your Own Business scheme provides an exemption from income tax up to a maximum of €40,000 per annum for a period of 2 years. The Start Your Own Business Relief only applies to income tax payable on the profits from your business. It does not extend to PRSI and Universal Social Charge (USC) so you will be liable to pay PRSI and USC on any profits earned in your new business.

SoGal Black Founder Startup Grant

If you qualify for the Start Your Own Business Relief, the following must also apply:

  • The business must be set up between 25 October 2013 and 31 December 2018
  • It must be a new business (not a business that is bought, inherited or otherwise acquired)
  • It must be unincorporated, that is, it must not be registered as a company

This relief does not require pre-approval unlike the Back to Work Enterprise Allowance scheme which is administered by the Department of Social Protection. Instead, you claim this relief by completing the relevant section of your annual Income Tax return form each year.

For more information about:

  • Self-employment
  • Registering for Income Tax
  • Paying and Filing your annual Tax Return
  • Self Assessment

The benefits

Advantages of being self-employed include:

  • you are your own boss
  • being able to make your own decisions
  • flexibility around your working days and hours
  • self-fulfilment, making full use of your experience, talents and abilities
  • financial independence

The challenges

Disadvantages of running your own business include:

  • no guaranteed, regular income
  • needing funding for start-up costs
  • working long hours to suit your business needs
  • no holiday or sick pay and no pension
  • sorting out payment of your own tax accounts