The Start-up Capital Incentive (“SCI”)

business-3167295_1280

“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.”

Richard Branson

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.

WHAT QUESTIONS DO YOU HAVE?

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: info@cooneycarey.ie.  To keep in touch, connect with us on LinkedIn.

Share This Post:
  • email
  • Facebook
  • LinkedIn
  • Twitter
    Posted on July 1, 2020 by Cooney Carey

    “Leadership is a behavior, not a position or a title.”

    mask-3829017_1280The 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;

    • Knowing when to praise – I once had a former boss who taught me that if people do well, they should be praised in public and if they aren’t up to the task then criticized in private. Generally, people thrive on praise so if you can, do it in public.
    • Look at things from your colleagues’ point of view – it has been said that it can be lonely at the top and that often leaders are out of touch, therefore it is really important to see an issue from your colleagues’ point of view.  This could be something as simple as how the photocopier is replenished, whilst this may be unimportant for your job, it could be the most important thing for your colleague, so try to give it the respect it deserves.
    • Show Empathy – to show empathy is not a sign of weakness, it just shows that you feel for their situation. In a situation where say a hundred people had to be made redundant, this is a never going to be a pleasant situation, however if empathy is shown, then the corporate message may be received in a more positive manner.
    • Have a sense of humour – If you can, a good sense of humour and laugh at yourself when the need arises and tell anecdotal stories, it can go a really long way to building up rapport and camaraderie with staff.
    • Listen to you colleagues – to truly listen to your colleagues can often take more focus and concentration than to speak, therefore this is an action that should be practiced as it indicates a genuine interest and makes your colleague feel valued.  If we care we listen. We should listen to understand rather than formulate a response.

    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.

    Share This Post:
    • email
    • Facebook
    • LinkedIn
    • Twitter
      Posted on June 25, 2020 by Cooney Carey

      Client Update 25th March 2020: COVID-19 MEASURES TO SUPPORT EMPLOYERS AND EMPLOYEES

      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

      To discuss the following issues please contact Mary Flanagan (mflanagan@cooneycarey.ie) or Gordon Hayden (ghayden@cooneycarey.ie) or your regular contact within Cooney Carey.

      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 (cobrien@cooneycarey.ie) or Tony Carey (arcarey@cooneycarey.ie) or your regular connection within Cooney Carey.

      • FUNDING SUPPORT OFFERED BY SBCI and Enterprise Ireland
      • BANK SUPPORT
      • REVENUE COMMISSIONERS SUPPORT
      • CASH FLOW PLANNING

      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?

      Share This Post:
      • email
      • Facebook
      • LinkedIn
      • Twitter
        Posted on March 26, 2020 by Cooney Carey

        Newer Posts →

        ← Older Posts