“In time of recession there are massive opportunities and fortunes to be made, so for new up and coming entrepreneurs, this is the time to go and start a business.”
Did you know that some of the world’s most successful companies were started in a recession? IBM, Microsoft, Airbnb are just some of the household names for which the idea sparked in challenging times. Given the unprecedented economic impact of the coronavirus pandemic, its timely to consider the tax reliefs which may be of assistance to budding entrepreneurs.
The Start-Up Capital Incentive (“SCI”) scheme was introduced with effect from 1 January 2019 and is available to “micro-enterprises”, i.e. businesses with less than 10 employees and an annual turnover/annual balance sheet total of less than €2m.
Broadly, the SCI provides tax relief for investments made in qualifying companies, similar to the well-known Employment Incentive & Investment Scheme (“EIIS”) but with the added benefit of being available for investments made by family members. The maximum amount of funding which may be raised under the scheme is €500,000.
The conditions which apply to the SCI are quite stringent. For example, in order to qualify for the relief, the company in which the investment is made must solely exist for the carrying on of a “qualifying new venture” and the shares must be issued to the investor within two years of the incorporation of the company. In addition, the company in which the investment is made must not have any partner or linked businesses.
If available, the tax relief is available to the investor in two tranches. The first being available in the year of investment and is equal to 75% of the investment made, up to a maximum investment of €150k. The balance of the relief may be available after four years, provided that the company has either increased its number of employees or increased spending on R&D.
We are happy to help. Please contact our tax department on 01 677 9000 who would be delighted to assist you. Alternatively, send us an email: firstname.lastname@example.org. To keep in touch, connect with us on LinkedIn.
The above quote has been around in one form or another. I fell upon this quote again recently and it made me think how relevant it is in these current times of crisis, and that the time for any leader to step up is now.
Leadership does not come just from a title or be reserved solely for the masters of business or politics. Leaders come from all walks of life be it teachers, soccer coaches or traffic wardens. A leader’s ability to inspire will really derive from how well they can articulate their vision and communicate it with others.
By adopting the following communication skills this can help you become a better leader;
While titles may bring position, they may not earn loyalty or trust – it is behavior that does this, and communication is one of the best behavioral traits to cultivate when developing our leadership skills.
WHAT QUESTIONS DO YOU HAVE?
We are happy to help. Please contact our friendly and knowledgeable team on 01-6779000.
To keep in touch, connect with us on Linkedin.
A comprehensive guide has been issued today to Cooney Carey clients setting out the measures made available to support employers and employees. Mail us please if you require a copy. If, at any time, you need to speak with staff in Cooney Carey please contact us as you normally would.
A summary only is included herein, a reading of the complete document is necessary to fully understand the issues raised. These measures are developing quickly, it is necessary to ensure that you have the latest available information.
Covid-19 WAGE RELATED SUPPORT SCHEMES
1 TEMPORARY WAGE SUBSIDY SCHEME FOR THOSE WHO RETAIN EMPLOYEES
2 PANDEMIC UNEMPLOYMENT PAYMENT FOR THOSE WHO HAVE LOST THEIR JOBS
3 SHORT TERM WORK SUPPORT FOR EMPLOYEES WORKING A SHORT WORKING WEEK
4 ILLNESS PROVISIONS FOR THOSE MEDICALLY REQUIRED TO SELF ISOLATE
Covid-19 FUNDS SUPPORT
Understanding your cashflow at this time is critical. To discuss your banking and cash flow needs please contact Colin O’Brien (email@example.com) or Tony Carey (firstname.lastname@example.org) or your regular connection within Cooney Carey.
Your Plan should consider how quickly you envisage your business returning to normality once the current Covid-19 crisis has passed. What do you need to do now to minimise disruption for when you are returning to normal?