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Start your own Business Relief

  1. Overview
  2. Who qualifies for this relief?
  3. Are there any restrictions for your business?
  4. How do you apply for the relief?
  5. How do you calculate the relief?
  6. What happens if you make a loss in the first year?

Who qualifies for this relief?

You may qualify for this relief if you have been unemployed for 12 months or more. During those 12 months, you must have received one of the following as set out on the Department of Social Protection (DSP) website:

  • Crediting PRSI Contributions
  • Jobseeker's Allowance
  • Jobseeker's Benefit
  • One Parent Family Payment
  • Partial Capacity Payment.

Breaks in Jobseeker's Benefit or Allowance

You may have a break in your claim for Jobseeker's Benefit or Allowance. In certain circumstances you may still qualify for Start Your Own Business Relief.

Taking up employment that did not work out

A situation may arise where you have to stop claiming Jobseeker's Allowance or Benefit in order to start work. If that job does not work out you may be able toclaim Jobseeker's Allowance or Benefit again. 

Determining long term unemployment

If you reclaim Jobseeker’s Benefit/Allowance within a 12 month period, your period of long term unemployment is calculated by linking your:

  • current period of unemployment
  • and
  • earlier period of unemployment.

Note

You can only link two periods of unemployment if they are separated by less than 12 months.

  • Example 1

    Joan was in receipt of Jobseeker's Allowance for 10 months. She found a job but it did not work out and after two months she was back in receipt of Jobseeker's Allowance. Her current period of unemployment has lasted 4 months so far and she is planning on setting up a new business. Can she avail of this relief?

    Yes she can. Joan's ten-month period of unemployment will be linked to her 4 month period, giving her a total period of unemployment of 14 months. Note that this link only exists where the two periods of unemployment are separated by less than 12 months.

  • Example 2

    John was in receipt of Jobseeker's Allowance for 6 months. He then went on a Back to Education scheme for one month. After this scheme, he went back on Jobseeker's Allowance for five months. When calculating this relief, John has been unemployed for 12 months (6 months plus 1 month plus 5 months) and has been in receipt of Jobseeker's Allowance for that period.

  • Example 3

    For the last two years, Billy was working 3 days a week and in receipt of Jobseeker's Allowance for the other 4 days a week. He is planning on setting up a new business. Can he avail of this relief?

    Yes he can. Social Welfare view Billy as having been unemployed and in receipt of Jobseeker's Allowance for 312 days (three days a week for 104 weeks), which is equivalent to 12 months unemployment.

    If you are not sure whether or not you qualify as long term unemployed, please contact your Social Welfare office.

Next: Are there any restrictions for your business?

Published: 30 January 2023 Print this page

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