Tax Relief / Exemption for Startups?

sirfugy

Hi all,

I am a business owner of a startup and we're nearly one year in business now. Things go pretty well, we're expanding at a decent rate.

One thing I have to admit, I suck at business. Now I was talking with someone that mentioned tax relief / exemption for startups for the first couple of years.

I checked internet and I do find certain websites and articles about this, but I don't really understand it (woopsie!).

Would somebody please be so kind to explain to me in normal words what the possibilities are?

Thanks so much in advance.

jimmii

If you were unemployed for 12 months before you started you could be entitled to start your own business relief. That's about it really. You don't get much help starting out!

nompere

sirfugy wrote: »

Hi all,

I am a business owner of a startup and we're nearly one year in business now. Things go pretty well, we're expanding at a decent rate.

One thing I have to admit, I suck at business. Now I was talking with someone that mentioned tax relief / exemption for startups for the first couple of years.

I checked internet and I do find certain websites and articles about this, but I don't really understand it (woopsie!).

Would somebody please be so kind to explain to me in normal words what the possibilities are?

Thanks so much in advance.

If your start-up is a company, then there is a three year exemption from corporation tax. It's in S.486C Taxes Consolidation Tax Act 1997.

If your start-up is as a sole trader then I'm afraid this doesn't apply.

martyoo

What about the Start your own business relief?

The Start Your Own Business scheme provides for relief from Income Tax for long term unemployed individuals who start a new business. The scheme will provide an exemption from Income Tax up to a maximum of €40,000 per annum for a period of two years to individuals who set up a qualifying business; having been unemployed for a period of at least 12 months prior to starting the business. It runs from 25 October 2013 to 31 December 2016.

Edit: jimmii mentioned this already.

dbran

nompere wrote: »

If your start-up is a company, then there is a three year exemption from corporation tax. It's in S.486C Taxes Consolidation Tax Act 1997.

If your start-up is as a sole trader then I'm afraid this doesn't apply.

It is also linked to Employers PRSI so essentially you have to be taking on staff to get any relief. You don't get it just because you are a start up.

dbran

Johnny Jukebox

There are also R&D tax credits available.

http://www.revenue.ie/en/tax/ct/research-development.html

However, I believe that the audit of these claims is stringent (due no doubt to some chancers taking the piss as usual) and that you are best advised to seek professional help when compiling a claim.

sirfugy

Thank you all for your response. Doesn't seem like we are eligible for some kind of exemption/relief then. Not unemployed before and apart from the founders we only work with freelancers. :-(

@dbran: Is there a limit you need to hit in order to get this? Would 1 part-time hire be enough? Min. 5 FTEs? etc.

dbran

sirfugy wrote: »

Thank you all for your response. Doesn't seem like we are eligible for some kind of exemption/relief then. Not unemployed before and apart from the founders we only work with freelancers. :-(

@dbran: Is there a limit you need to hit in order to get this? Would 1 part-time hire be enough? Min. 5 FTEs? etc.

Its linked to Employers PRSI. For each employee the maximum relief is €5000. And the total maximum relief overall is €40,000 so 8 employees.

It is effectively a refund of the employers prsi you pay up to €5000 for each employee you take on.

dbran

Duckett

have you looked at SURE - see link below

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