merrion street

Thinking about starting your own business? A number of financial supports are available for people looking to start a business who have been receiving social welfare payments. These supports are provided through the Department of Social Protection. Take a look below at some of the supports available to start you on the path to setting up your own business.

Back to Work Enterprise Allowance

The Back to Work Enterprise Allowance (BTWEA) scheme encourages people in receipt of certain social welfare payments to become self-employed. You may be eligible for this support if you have received one of the qualifying payments – jobseeker's allowance or jobseeker’s benefit, disability allowance or carer’s allowance - for at least 12 months. Thos who take part in the Back to Work Enterprise Allowance scheme keep 10% of their social welfare payment for the first year, and 75% for the second year. Find out more about the allowance and how to apply here. 

Short Term Enterprise Allowance

Another support for those looking to become self-employed is the Short-Term Enterprise Allowance (STEA). To qualify for this support, which replaces jobseeker’s benefit, a business plan must be approved in advance by a case officer based in an Intreo Centre, a social welfare local office or an Enterprise Officer in your local development company. More information on the allowance and how to apply can be found here. 

Help starting a business

The Enterprise Support Grant also provides financial support for the costs of setting up a business, such as accountancy and legal services, marketing and business equipment.

More information

• If you avail of the BTWEA or STEA scheme you may qualify for Start Your Own Business Relief which provides a two-year exemption from income tax up to a maximum of €40,000 each year. This relief is for people who have been unemployed for at least 12 months before starting their own business.
• On both schemes participants can keep any extra benefits that they received with the Jobseeker’s Benefit, such as a medical card and Back to School Clothing and Footwear Allowance.
• Dependent adults of a person eligible to claim the BTWEA may also be eligible for the allowance.
• Employment grants from a Local Enterprise Office or a local development company do not affect entitlement either support.
• Short-Term Enterprise Allowance recipients do not have to pay PRSI or Universal Social Charge (USC).
• The Back to Work Enterprise Allowance is not taxable.