First-time entrepreneurs given tax relief

16th June 2015 | News

New business start-ups can claim back thousands of Euros in tax relief to offset start-up costs, following a revamp of a scheme operated by the Department of Jobs, Enterprise and Innovation.

The Government has also introduced a €10m competitive fund to support the growth of more start-ups across Ireland, with half of the fund being distributed to Local Enterprise Offices.

The revised tax relief scheme means PAYE workers who opt to begin their own business are entitled to income tax refunds of up to 41 per cent of their capital investment.

The ‘Start-Up Relief for Entrepreneurs’ (SURE) scheme will be capped at €100,000 per person.

Upon launching the scheme on Monday, Finance Minister, Michael Noonan and Jobs Minister, Richard Bruton confirmed the initiative is important given that two-thirds of all new jobs in Ireland are now created by start-ups.

Mr Bruton confirmed the new relief was necessary to underpin first-time entrepreneurs as previously start-ups have “fallen into pitfalls where cash runs out before their potential is fulfilled”.

Business owners will also be encouraged to calculate the level of tax they are owed from the State and use this information to support loan applications with banks.

The existing SURE scheme has failed to take off due to a lack of awareness but Bruton is confident more budding entrepreneurs will avail themselves of this tax relief going forward.

“We are determined to ensure that as many people as possible are aware of this generous scheme so that more people start businesses and help create the jobs we need,” added Bruton.

In addition, Employment Minister, Ged Nash implied yesterday that the Government will also be tackling the issue of zero hour contracts.

At an IBEC event, Mr Nash confirmed the “need to balance fair employment with the need to create jobs in the first place”.

Image: William Murphy