Income Tax Returns and Back To Work Enterprise Allowance

MickOR

Hi,

My partner started her own business under the BTWEA in March and we are unclear what the protocol is in filing her first years tax returns. Have looked on revenue, citizens information etc but can't seem to find a definitive answer. My question is should she be filing a tax return for this year (deadline of Oct 31 is looming) even though she is only in business since march or does she wait until she is in business a full year to do it (i.e file her first years tax returns before Oct 31 2014)?

If anyone could shed some light on this I'd really appreciate it.

Cheers

dbran

Hi Mickor

She does not need to file a return this month as this return is dealing with the tax year 2012 only.

She should file her first return in October 2014 and should look to prepare her first set of accounts either up to December 2013 or February 2014 depending on how the figures look.

Best Regards


Dbran

MickOR

Thanks dbran, appreciate the reponse. That clears things up a bit for us anyway.

Jacknory

Hi Mickor

I think you still have to do a return even if its a Nil return??

Do you have to declare the BTWEA as income when you make a return?

Thanks

Jack

MickOR

Hi Jacknory,

Yeah as far as I know you have to declare even if it's nil. Although in the budget they've brought in a new thing where people on BTWEA don't have to pay income tax for 2 years. Not sure of the finer details on it yet, whether you still need to declare nil for the two years or not.

You don't pay income tax on the BTWEA itself so you don't have to declare it when making a return.

Mick

Graham

MickOR wrote: »

You don't pay income tax on the BTWEA itself so you don't have to declare it when making a return.

I'm not sure who is correct but that info appears to conflict with:

http://www.boards.ie/vbulletin/showthread.php?t=2057063663

dbran

Hi

Back to work Enterprise Allowance is not taxable, not subject to USC or PRSI. It does not have to be declared on the tax return.

Short term enterprise allowance however is taxable and does need to be declared.

http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/claiming_a_social_welfare_payment/taxation_of_social_welfare_payments.html

Regards

dbran

crebel81

dbran wrote: »

Hi

Back to work Enterprise Allowance is not taxable, not subject to USC or PRSI. It does not have to be declared on the tax return.

Short term enterprise allowance however is taxable and does need to be declared.

http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/claiming_a_social_welfare_payment/taxation_of_social_welfare_payments.html

Regards

dbran

Hi Dbran,

Friend of mine has been participating in the back to work enterprise allowance scheme since 2012. He received a tax form from the revenue to fill out. So effectively, his income for 2012 is not taxable?

dbran

His income from the BWEA is not taxable. Any other income is taxable as you are supposed to be setting up a business.

Kind Regards

dbran