Unemployed & starting a business from home

Discussion in 'Tax' started by Mortimer, Jan 11, 2017.

  1. Mortimer

    Mortimer Frequent Poster


    I hope this is the correct forum.
    I have been unemployed since April 2013 and have been minding our three kids in interim period. I was in receipt of Jobseekers for 9 months but this ended as they means-tested my wife's salary. Since then I have not been signing on for credits as I thought there was no point as i was not receiving any benefits (it was tortuous waiting for an hour or two in social welfare office with a new baby as it was to sign on when I was getting benefit).

    I'm now in a position to start my own marketing company from home. I have two clients lined up with an estimated initial monthly income of around 2200 euro. I have a few questions:

    -Am I eligibe for this scheme (http://www.revenue.ie/en/tax/it/reliefs/own-business-scheme/). I rang Revenue, the new FAS and my local social welfare office. The latter two hadn't even heard of this scheme (it states it ended in December but was extended in budget) and Revenue weren't really sure. They all passed the buck to one another.

    -What am I able to write off against tax, e.g. portion of mortgage interest heating, light, internet etc. if I am working from home. I'lll probably earn 25-30k turnover in first year and want to minimise tax

    -What effects will this have on my wife's taxation? She now earns around 53k and has my tax credits. I presume she will lose my tax credits and I will be taxed separately as a business.

    Please let me know if there is anything else to be aware of. It's an exciting but daunting time but I'm quite naive about setting up as a business, rather than carrying out the actual work.

    *I realise I'd asked similar questions in the past but it's only now i've confirmed clients and have been frustrated as to whether i can qualify for above scheme.