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Local enterprise allowance.

  • 17-10-2016 8:45pm
    #1
    Steve
    Registered Users, Registered Users 2 Posts: 22,584 ✭✭✭✭


    Long story short:

    Got redundancy in Sept 2015.
    Got JSB (valid for 9 months) after that till Jan 2016 .

    Qualified for and opted for LEO in early 2016 which lasted the remainder of what the JSB would have been.

    Since then, have earned as a sole trader.

    Can anyone clarify?

    Is JSB is exempt from any Income tax/USC/PRSI
    What about LEO?

    I know any regular income after all of that is taxable.


Comments

  • #2
    Synode
    Closed Accounts Posts: 7,967 ✭✭✭Synode


    JSB is taxable. Never heard of LEO and it isn't listed here. Was it the Short term enterprise allowance (which is taxable)?


  • #3
    Steve
    Registered Users, Registered Users 2 Posts: 22,584 ✭✭✭✭Steve


    Synode wrote: »
    JSB is taxable. Never heard of LEO and it isn't listed here. Was it the Short term enterprise allowance (which is taxable)?

    Sorry, yes, it was indeed the Short Term Enterprise Allowance... how could you all not know that is what I meant! :D (my apologies)

    JSB is also liable?? aw nuts, that just ruined my week. :mad:


  • #4
    phormium
    Registered Users, Registered Users 2 Posts: 3,395 ✭✭✭phormium


    I'm not sure if this has changed with the introduction of the SYOB relief scheme from tax for first two years but it was the case that where you were getting a taxable benefit such as STEA you were also entitled to the PAYE tax credit whether self employed or not. I can't any reference to it online now so the new scheme may have superseded that but check with revenue as that would go a long way towards negating the tax effect of the benefit.

    It was definitely in place in 2012 and the amount of the credit was limited to the max amount of tax due on the payments so if the full payment didn't use up all the paye credit then you could only claim the proportion of it that did.

    For example in that year I had the STEA and it would have been taxed by 800 but I received 800 of the available paye credit that year so cancelled each other out.


  • #5
    Steve
    Registered Users, Registered Users 2 Posts: 22,584 ✭✭✭✭Steve


    phormium wrote: »
    I'm not sure if this has changed with the introduction of the SYOB relief scheme from tax for first two years but it was the case that where you were getting a taxable benefit such as STEA you were also entitled to the PAYE tax credit whether self employed or not. I can't any reference to it online now so the new scheme may have superseded that but check with revenue as that would go a long way towards negating the tax effect of the benefit.

    It was definitely in place in 2012 and the amount of the credit was limited to the max amount of tax due on the payments so if the full payment didn't use up all the paye credit then you could only claim the proportion of it that did.

    For example in that year I had the STEA and it would have been taxed by 800 but I received 800 of the available paye credit that year so cancelled each other out.

    AFAIK, it only applies now if you were 'unemployed' for two years previous to getting STEA or any other SYOB incentive.


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