BTWEA & Tax

markjbloggs

Hi, 2 questions

1. my understanding is that the BTWEA weekly payment is not taxable and should not be reported on Form 11 on ros.ie. Is this accurate?

2. other income reported on Form 11 is eligible for the €40,000 exemption from income tax. Again is this correct?

thanks
M

Calahonda52

Where are you getting the 40k exemption.
Certainly wont apply to all other income types such as Case III, IV & V

wiggle16

markjbloggs wrote: »

Hi, 2 questions

1. my understanding is that the BTWEA weekly payment is not taxable and should not be reported on Form 11 on ros.ie. Is this accurate?

2. other income reported on Form 11 is eligible for the €40,000 exemption from income tax. Again is this correct?

thanks
M

You are thinking of two different things. The BTWEA is not a tax scheme, it's a payment.

1) the BTWEA is not subject to tax, USC or PRSI, and so you should not declare it on the Form 11

2) the exemption limit you are likely referring to is Start Your Own Business Relief (SYOBR). This is a tax relief scheme and is unrelated to the BTWEA.

When you are completing the Form 11, in the self-employed section, you can tick a box confirming that you wish to claim SYOBR on the self-employed income you are declaring.
To qualify, you must have been unemployed and in receipt of social welfare for the 12 consecutive months prior to becoming self-employed. If your gross self-employed income is under €40000, it should be exempt from income tax (but will still be chargeable to USC and PRSI). If it goes over, it is not exempt and tax will be due on it. If you were not unemployed for 12 months prior, you should not claim the SYOBR. Note that the exemption applies to self-employed income only - any other income is chargeable to tax and the self-employed income is still taken into account when determining your rate bands for tax and USC.

markjbloggs

Thanks for the replies, Calahonda & Wiggle. Cleared things up for me.