Start-ups get breathing room for income tax
BUDGET 2014 introduced a diverse array of tax incentives for small businesses.
Key among these is the "Start Your Own Business" scheme.
This gives a two-year exemption from income tax to people who set up their own businesses after receiving social welfare for 15 months or more, up to a limit of €40,000.
"It won't provide people with any help in actually getting the business up and running – this is not seed money – but it will provide wiggle room for new businesses once they are making money," said KPMG.
"Some entrepreneurs find themselves forced to take out loans to pay their income taxes when the due date comes around because they just don't have the cash flow – this removes that burden for the crucial first two years."
Small businesses with cash-flow concerns will also be pleased to hear that the threshold for receipts-based VAT accounting has been raised.
This accounting system allows companies to hold off on paying VAT to the State until they've been paid by their buyer, rather than as soon as a sale is agreed. It was limited to companies with annual sales of less than €1.25m, but this limit has been raised to €2m.
"This should make this easier style of accounting available to more small businesses," said KPMG.
A capital gains tax exemption for business investors has also been announced. If you use the proceeds from an asset sale to invest in a new Irish business between 2014 and 2018, and then sell your stake three or more years later, you can claim up to 50pc off the capital gains tax levied on the proceeds.