start up tax relief.

[Wipetheslate]

Start-Up Tax Relief: if you start up and work full-time in your own company, you can claim back the income tax you paid in the previous six years to invest equity into the company (subscribed as shares). New companies do not pay Corporate Tax for the first three years.

This information is on Richard Brutons household information circular , its under a subsection " options for unemployed "
Does anybody know anything about this incentive ?
Is it open to unemployed people ( former self employed) like myself who receive no state help , no dole , no jsb,jsa,
Thanks .
I will contact his office on Monday to inquire but any info now would be welcome .

 

[smeharg]

It's refering to the seed capital scheme. Look at the Enterprise Ireland website for more details. Basically, you get a tax refund against the money you invest in your new company. It's particularly suited to people that have been made redundant and have a lump-sum to play with.

...
New companies do not pay Corporate Tax for the first three years.
....

This isn't correct.

New companies can qualify for a relief from corporation tax. The relief reduces the company's tax bill by the amount of employers' PRSI paid, up to a maximum of €40,000.

 

[danash]

It's refering to the seed capital scheme. Look at the Enterprise Ireland website for more details. Basically, you get a tax refund against the money you invest in your new company. It's particularly suited to people that have been made redundant and have a lump-sum to play with.

.

Quick question ....is the tax refund only equal to the amount invested in the new company or do you get back ALL of the tax you have paid in the preceding 4 (6?) years..?

 

[smeharg]

The tax refund is relative to the amount invested. Say for example, you earned and paid tax on €100,000 of PAYE income in 2011 and were made redundant in early 2012. If you invested €100,000 in a qualifying company, in 2012, that €100,000 would be relieved against your 2011 income. This means that your taxable 2011 income would be nil, and you'd get back all the tax you paid in 2011.

If you invested only €50,000 you're 2011 taxable income would be reduced by that amount and you'd get a refund relative to the €50,000.

You can spread the relief back over the preceding 6 tax years.

 

[danash]

Thanks for that.....do I have to show the source of the investment cash....for example - could I borrow 50k to add to my own 50k and invest 100K to claim a greater refund ? Does it have to come from my own resources..?