Back To Work Enterprise Allowance Revenue

Fusiondancers

Hi all,
I am pretty confused when it comes to the form (BTWEA) I am filling out and on it - it says have you registered with Revenue and two boxes one for Yes and one for No - I was told that they actually register you so you just tick the no box or am I being stupid? - Do I get in touch with Revenue first and say I am unemployed and setting up a business and applying for the Back to work Enterprise Allowance and want to become a Sole Trader? - sometimes the way things are worded really does confuse me - I hope I will be accepted to the scheme the only bit I am nervous about is once you apply for it they call you in with your business plan and mine will be pretty much straight to the point - Im not applying for Dragons Den or anything i.e. projections and how much I will earn etc - I just want to keep my social and set up my business and then pay tax on what I earn - this is for 2 years regarding social so its pretty much daunting but if I don't do it now and believe in myself I never will - would love your advice for the form and any other help would be much appreciated.

I did this scheme a while back. If you're registered with revenue then say so. If you're not, they'll probably help you out (they did it for me).


They will give you a template for a business plan that you just have to fill in yourself. I didn't have to do that but as far as I am lead to believe it's fairly straight forward. Make sure you set up your business before the end of the year to qualify for the 2 years free tax (start your own business tax relief).

shugy

[Deleted User] wrote: »

I did this scheme a while back. If you're registered with revenue then say so. If you're not, they'll probably help you out (they did it for me).


They will give you a template for a business plan that you just have to fill in yourself. I didn't have to do that but as far as I am lead to believe it's fairly straight forward. Make sure you set up your business before the end of the year to qualify for the 2 years free tax (start your own business tax relief).

Is one on tax free from the date they start to 2years after on same date?

shugy

shugy wrote: »

Is one on tax free from the date they start to 2years after on same date?

As far as I know, if you start your business as a sole trader (not a company) between two dates (i think october 2013 and december 2016) you're entitled to two years tax free earnings (up to €40k).

Your tax year is jan-dec, so lets say you start your business now, in june, then you can claim the reliefe until june 2018. So when you're submitting your 2018 return, you only pay tax on whatever you earned from july onwards (if that makes sense).

I missed out on this, and it kills me. That said, I wasn't making feck all in the first two years anyway, but still.



One thing im still not sure of (perhaps someone here knows) but is there not a certain amount of money you're allowed to make, before you start paying tax? Just in general, like.

(ie; is the first 5k per year tax free, and then you start geting with with 20% tax on anything over that?)O.

Or is it a case that everything is taxed at 20%, all the time?

Fusiondancers

Deleted User wrote: »

As far as I know, if you start your business as a sole trader (not a company) between two dates (i think october 2013 and december 2016) you're entitled to two years tax free earnings (up to €40k).

Your tax year is jan-dec, so lets say you start your business now, in june, then you can claim the reliefe until june 2018. So when you're submitting your 2018 return, you only pay tax on whatever you earned from july onwards (if that makes sense).

I missed out on this, and it kills me. That said, I wasn't making feck all in the first two years anyway, but still.



One thing im still not sure of (perhaps someone here knows) but is there not a certain amount of money you're allowed to make, before you start paying tax? Just in general, like.

(ie; is the first 5k per year tax free, and then you start geting with with 20% tax on anything over that?)O.

Or is it a case that everything is taxed at 20%, all the time?

Thank you so much for this advice so when it comes to the deadline of filing your tax returns its automatic once I am accepted onto the BTWE Scheme - I don't submit anything is it for 2 years? When it comes to the business plan is this something that you send in or once I fill out the form to apply for it do they call you in and ask you why you want to go on it etc and can we see your business plan - is it nerve wrecking? or are they pretty much there to say right you have a head on your shoulders we are happy with your business plan and we are happy to place you onto the scheme etc

Thanks for all the input

Fusiondancers

Fusiondancers wrote: »

Thank you so much for this advice so when it comes to the deadline of filing your tax returns its automatic once I am accepted onto the BTWE Scheme - I don't submit anything is it for 2 years? When it comes to the business plan is this something that you send in or once I fill out the form to apply for it do they call you in and ask you why you want to go on it etc and can we see your business plan - is it nerve wrecking? or are they pretty much there to say right you have a head on your shoulders we are happy with your business plan and we are happy to place you onto the scheme etc

Thanks for all the input

I did it via the Louth Leader Partnership. I'm not sure if every county operates the same way, but the Louth Leader Partnership exists effectively just to help people start their business and get on this scheme and get the ball rolling.

So dealing with Social Welfare directly is fairly limited as the lads in the Louth Leader do most of the work for you.

With regards to revenue, you do file tax returns. You tell them what you made, what you spent, etc. the only difference is that for the first 2 years you don't pay any tax. You DO still have to actually send in a return though, stating what you've done.


A friend of mine went onto this scheme recently (a year ago) and it was tedious for him, as it took a long time (I think it was about 10-12 weeks after his initial application/meeting before he was actually on the scheme).

If you have an equivalent to the louth leader partnership, then its not too stresssful, no, because they want to help you get started. I'd guess that if you had to deal directly with Social Welfare it would probably be a bit more tense as they can sometimes be a bit difficult to deal with.


Just play it by ear and see what happens.