Seed Capital Scheme

CapedCrusader

Hi all,

I'm a PAYE worker and started my own business in parallel in 2007. I run an online retail business as a sole trader in addition to my PAYE job.

If I leave my Job and Start a company to carry on the business I've been running as a sole trader - would I qualify for the seed capital scheme?

I understand it's for new businesses only... does that fact that I've been running the business as a sole trader since 2007 disqualify me?

conolan

Maybe you 'relaunch' under a new name or register a business name. Explain that anything previous was test phase, now moving to full operational phase.

CapedCrusader

Was thinking along those lines too.

How new does NEW have to be? For example, if you were trading under a newly registered name for 2 months before making the application - is that new enough?

VO

There are very strict criteria for the Seed Capital Refund but I don't think that you would be disqualified. You would need to invest in paid up share capital in a limited company to qualify

http://www.revenue.ie/en/tax/it/leaflets/it15.html

Your first port of call is your local enterprise board or Enterprise Ireland as they are the bodies that vet your application and give you the certification, revenue only rubber stamp & compute the refund

CapedCrusader

Thanks guys.

Does anyone have any advice and/or tips to maximise my chances of being approved? Should I hire the services of an accountant etc?

Thanks,

CC

CapedCrusader

Hmmm... doesn't look like an online retail operation will qualify.. :-(

theaccountant

More information on the seed capital scheme available here:

http://www.enterprise-ireland.com/Grow/Finance/Seed_Capital_Scheme.htm

It is a good scheme but one does have to subscribe for shares in the qualifying company to claim the tax back.

HeinekenTicket

Make sure you emphasise the international/export potentional of this business. If it doesn't have an international type dimension, your chances of qualifying for seed capital are likely to be much less.

CapedCrusader

So there is a chance for a retail business of qualifying if you can demonstrate some export potential, even if you don't make anything or provide a service?

HeinekenTicket

I had a look at the links provided by the other posters. The answer to your last question is, in my opinion, no.

However, a phone call to enterprise ireland or your local city or county enterprise board would give you a definitive and authoritative answer.

VO

Can you pitch it as an internationally traded service as this is one form of business whcih qualifies.

Don't know if it worth getting an accountant on board, it is a very straightforward procedure. I went tthough the process in 2008 & 2009 so if you want to have a chat about it pm me.