investors to obtain income tax relief on investments up to a maximum of €150,000 per annum in each tax year up to 2013. Relief is initially available to an individual at 30%. A further 11% tax relief will be available where it has been proven that employment levels have increased at the company at the end of the holding period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. More information available at www.revenue.ie.
R&D Tax Credit
The Research and Development Tax Credit is a valuable tax-based incentive that is designed to encourage investment in R&D by companies in Ireland. A 25% tax credit for qualifying Research and Development expenditure exists for companies engaged in in-house qualifying research and development undertaken within the European Economic Area. This credit may be set against a company’s Corporation Tax liability. The first €100,000 of all qualifying R&D expenditure will benefit from the full 25% R&D tax credit from 2012. This is of particular benefit to SMEs. For larger R&D expenditure, the tax credit will continue to apply only to the amount by which expenditure in 2012 exceeds that incurred in the base year 2003. More information available at www.revenue.ie.
Recruiting Revenue Job Assist
Revenue Job Assist offers both employers and workers an incentive where people who have been 12 months on the live register (or disability allowance) are employed. The employer gets double write-off of the wages plus employers PRSI for three years – even at the minimum wage, it is worth €2,500 per year to a company and up to €8,000 per year to a sole trader. The worker gets an extra tax allowance – of €3,810 plus €1,270 for each child in year 1, and twothirds of these allowances in year 2, one-third in year 3 – for a worker on the 20% rate it is worth at least €762 in the first year or €1,524 over the three years.
Employers Job (PRSI) Incentive Scheme
The Employer Job (PRSI) Incentive Scheme is open to employers who create new and additional jobs. Under this scheme, employers do not have to pay the employers’ portion of the PRSI contribution for certain employees for 18 months. To qualify for this scheme both the job created and the person employed must meet certain criteria. More information available at www.welfare.ie
Useful Links • • • • • • •
Enterprise Ireland- http://www.enterprise-ireland.com/en/ South Dublin Enterprise Board- http://www.sdenterprise.ie/ Dept. Jobs, Enterprise & Innovation- http://www.enterprise.gov.ie Citizens Information- http://www.citizensinformation.ie/ Revenue- http://www.revenue.ie Forfas- http://www.forfas.ie/ Fas- http://www.fas.ie/
Useful Information for Businesses
Your Fine Gael Team in Dublin South West Minister Brian Hayes TD
Senator Cait Keane
Tel: 01-6183567 Email: firstname.lastname@example.org
Tel: 01 6183179 Email: email@example.com
Tallaght Central: Cllr Colm Brophy
Rathfarnham: Cllr Emma Coburn
Tel: 086 250 9223 Email: firstname.lastname@example.org
Tallaght South: Cllr Brian Lawlor
Tel: 087 6445472 Email: email@example.com
I am regularly contacted by companies and individuals who wish to set up a business and asked about support services that are in place. I have prepared this guide which I hope will be of benefit to you. It includes information on assistance schemes for people starting new businesses, support provided by the County Enterprise Board, access to finance, the role of Enterprise Ireland and various grants available. Needless to say if you have questions or queries please do not hesitate to contact me.
Tel: 087 0628484 Email: firstname.lastname@example.org
Cllr Anne-Marie Dermody Tel: 087 3072030 Email: email@example.com
FÁS Wage Subsidy Scheme
The FÁS Wage Subsidy Scheme provides financial incentives to employers, outside the public sector, to employ disabled people who work more than 20 hours a week. A person on the Wage Subsidy Scheme is subject to the same conditions of employment as other employees. These conditions include PRSI contributions, annual leave, tax deductions and the going rate for the job.
Brian Hayes TD Leinster House, Kildare Street, Dublin 2 Tel: 01-6183567 Email: firstname.lastname@example.org
Minister Brian Hayes TD Leinster House, Kildare Street, Dublin 2 Tel: 01-6183567 Email: email@example.com
JobBridge offers an internship of 6-9 months to a person who has been signing on as available for work and getting a payment or credits for at least three months. Time completed on programmes in FÁS training, back to education or on a community scheme will count towards eligibility. Participants receive €50 per week on top of their welfare payment. More information available at www. jobbridge.ie.
Starting your own Business
to the international market place. The new unit will provide assistance designed to aid client companies investigate, prepare and execute an international strategy.
Seed Capital Scheme
If you start up and work full-time in your own company, you can claim back the income tax you paid in the previous six years to invest equity into a company (subscribed as shares) engaged in a qualifying trade. The amount of relief is restricted to the amount of the investment. Since November 2011, the scheme is open to a much wider range of sectors and the ceiling on recoverable tax can now be up to €100,000 in each of the six ‘look back’ years. More information available at www.revenue.ie.
Three Year Corporate Tax Exemption
The scheme provides relief from corporation tax on the trading income and certain gains of new start-up companies in the first 3 years of trading. There will be full relief on income and gains relating to the trade where total corporation tax liability in any of the first 3 accounting periods does not exceed €40,000. There will be marginal relief where the tax liability falls between €40,000 and €60,000. You can earn €320,000 tax free per year for the first 3 years. The relief available is now based on the amount of employers’ PRSI paid by an employer in respect of their employees.
Back to Work Enterprise Allowance
If you have been signing on for over 12 months and you would like to become selfemployed, the Back to Work Enterprise Allowance (BTWEA) allows you to keep your social welfare payment for 2 years (Year 1: 100%, Year 2:75%). To qualify, you must be setting up a business that a Local Integrated Development Company or a Facilitator has approved in writing in advance. More information available at www.revenue.ie.
Enterprise Ireland Enterprise Ireland’s investment in its client companies is keenly focused on export and job creation potential. EI has a broad spectrum of supports, which are focused on meeting client companies’ development needs at various stages of development. In addition to its existing offer for Irish companies, Enterprise Ireland recently launched a series of new supports with the objective of achieving growth in exports and jobs. More information about these supports is available at www.enterprise-ireland.com.
Job Expansion Fund
The aim of the competitive Job Expansion Fund is to assist Enterprise Ireland client companies achieve enhanced growth through increased employment. The fund provides grant support up to a maximum of €150,000 towards the recruitment of new employees.
Potential Exporters Division
Enterprise Ireland has established a new Potential Exporter Division to stimulate greater activity within companies across all regions and to reorient those demonstrating real growth potential from the domestic
If you own or manage a small limited company and you have a business opportunity
or problem that you want to explore, you can apply for an Innovation Voucher worth €5,000. The objective is to build links between Ireland’s public knowledge providers and small businesses to create a cultural shift in the small business community’s approach to innovation.
High Potential Start Up
Enterprise Ireland’s High Potential Start-Up (HPSU) team provides intense support, seed and venture capital to entrepreneurs and early stage companies that are considered to have an innovative product, service or technology, and have the potential to achieve exports sales and create employment. To qualify a company should be headquartered in Ireland, less than 6 years old and capable of creating 10 jobs in Ireland and realising €1 million in sales within three to four years of starting up.
New Frontiers Entrepreneur Development Programme
New Frontiers is Ireland’s national entrepreneur development programme that is delivered at a local level by the Institutes of Technology. If you have an innovative business idea and are planning to establish and run your own company, the New Frontiers Entrepreneur Development Programme can provide you with a package of supports to help accelerate your business development and to equip you with the skills and contacts that you need to successfully start and grow your company. The programme is open to applications from a diversity of sectors including; food & consumer products, information & communication technology, engineering & electronics, medical devices, biotechnology, pharmaceuticals, digital media, cleantech/renewable energy and eligible internationally traded services.
South Dublin County Enterprise Board The South Dublin County Enterprise Board offers a variety of supports to assist the start-up, development and expansion of micro-enterprises (employing 10 or fewer employees), with priority given to the manufacturing and internationallytraded services sectors. In addition, non-financial business advice, training and mentoring supports are available through South Dublin County Enterprise Board at www.sdenterprise.ie.
Priming support is a South Dublin County Enterprise Board business start-up grant to help fund the cost of starting a small business in South Dublin. It is for new businesses within the first 18 months after start up.
Business Development Support
Business Development Support is for businesses in the growth phase after the initial 18 months start up period. The Board’s support for each project is strictly limited by the amount of eligible expenditure incurred (max 50%). The overall maximum support is €80,000. In general the level of funding will also relate to the level of employment provided in the short to medium term at an
indicative rate of €8000 per new job created. Eligible costs include; capital items such as equipment, salary costs- for the first year of employment, rental / accommodation costs, utility set-up costs, marketing costs and consultancy costs such as design fees, accountancy, legal and architects fees.
Feasibility/Innovation Grants are available to micro-enterprises to assist with the cost of necessary pre-start up studies carried out for the purposes of assessing market interest in/demand for a proposed new product or service. Subject to eligibility criteria, Priming and Business Expansion/Development grants may include Salary Costs for first year of employment.
Access to Credit MicroFinance Fund
The Government has developed a Microfinance fund aimed at start-up, new or growing enterprises across all sectors, with no more than 10 employees. Loans of up to €25,000 are available for commercially viable proposals that do not meet the conventional risk criteria applied by commercial banks. Applicants will have to demonstrate that they have been refused credit by a commercial lending institution before their application is considered. Borrowers will pay a commercial interest rate. More information available at www. microfinanceireland.ie.
Credit Guarantee Scheme
The Credit Guarantee Scheme facilitates €450m of additional bank lending over 3 years to viable micro, small and medium enterprises to help them obtain the working capital and investment that they need. The Government provides the lender with a 75% guarantee for which the borrower pays a 2% premium. Target companies are those lacking adequate security for a normal commercial loan, or where bank understanding of the specialised aspects of the business environment in which they operate is limited.
Credit Review Office
If you’re a small business or sole trader who has had difficulty getting credit or loan facilities up to a €500,000 limit or you have had an unfavourable change to your existing credit terms, get in touch with the Credit Review Office for an independent review. The banks are required to comply with the recommendation or to give their reasons for not doing so to the Credit Review Office. The Office has overturned the Banks’ decision in 35% of cases to date. More information available at www.creditreview.ie.
Tax relief Employment Investment Incentive (EII)
The Employment Investment Incentive (EII) is a tax relief incentive scheme that has replaced the Business Expansion Scheme, which provides tax relief for investment in certain corporate trades. The maximum investment by all investors in any one company or group of companies is €10,000,000 subject to a maximum of €2,500,000 in any one twelve month period. It allows individual
Minister Brian Hayes TD Leinster House, Kildare Street, Dublin 2. Tel: 01-6183567 Email: firstname.lastname@example.org