Start-up Refunds for Entrepreneurs (SURE Relief)

By Register a Company in Ireland, 23rd Aug 2017
We all know the important role played by start-up ventures and entrepreneurs in Ireland. They are responsible for the growth and production of wealth in the economy but creating a successful business isn’t easy. With that in mind, the Revenue has created a relief that helps budding entrepreneurs take the first step.

What is SURE Relief?

SURE is a tax relief that provides a refund of income tax that you paid in previous years in lieu of an investment in a limited company for shareholding. If you are an employee, an unemployed person or a person who has recently been made redundant or left employment and are starting your own business, you may be able to claim tax relief.
The scheme offers an income tax refund of up to 41% of the capital that is invested in a new business.
A refund can be claimed on income tax paid over the previous six years prior to the investment in the new business.
Before availing of the scheme, a number of general conditions must be satisfied, you must:

  • Establish a new company engaging in a qualifying trading activity.
  • Invest in the Company for the purchase of new shares (no preferential rights)
  • Have mainly PAYE income in the previous 4 years, including a person currently in PAYE type employment, an unemployed person, a person recently made redundant or a retired person.
  • Take up full-time employment in the Company either as a director or an employee for a period of at least 12 months.

A quick example:
Tom wishes to invest €100,000 in a SURE approved company

It might sound obvious to state but you need to pay PAYE before you could be entitled to a SURE Relief refund.In this example, Tom elects to claim his SURE relief claim in 2015 and he obtains a refund of €29,000.
As with all reliefs available from Revenue, there is a lot of criteria to meet before an approved claim are completed so it is important that you engage a professional which will provide you with timely and correct advice.
If you would like more information, please do not hesitate to contact us on +353 16874519 or alternatively you can fill out our contact form and an expert will be in touch shortly.