If you are starting a business in Ireland and you are currently on a social welfare payment, you may already qualify for substantial financial support that most people never hear about. The Department of Social Protection runs several schemes designed specifically to help unemployed people, recently redundant workers, and former Pandemic Unemployment Payment (PUP) recipients move into self-employment. Combined with grants from your Local Enterprise Office and time-limited Revenue reliefs, the supports below can put thousands of euro into a new business in its first two years.
This guide covers five of the supports we see clients use most often: the Back to Work Enterprise Allowance, the Short-Term Enterprise Allowance, the Enterprise Support Grant, the SURE income tax refund, and the five-year corporation tax relief for new companies.
Am I eligible for the Back to Work Enterprise Allowance?
The Back to Work Enterprise Allowance (BTWEA) is the headline support for anyone on a long-term jobseeker’s payment who wants to become self-employed. It is run by the Department of Social Protection through your local Intreo office. You keep your social welfare payment while you set up the business, which removes most of the cashflow risk of the first year.
To qualify, you must:
- Have been receiving Jobseeker’s Allowance, Jobseeker’s Benefit, or another qualifying payment for a continuous period, typically nine months or more
- Set up a new business that is a self-employed venture, approved in advance by a Case Officer or Local Development Company
- Not have used the scheme in the previous five years
Other qualifying payments include One-Parent Family Payment, Disability Allowance, Carer’s Allowance, Blind Pension, Invalidity Pension, Farm Assist, and a few others. The qualifying periods differ for each payment, so confirm your specific position with Intreo or Citizens Information before you start the application.
How much does the Back to Work Enterprise Allowance actually pay?
The structure is generous and surprisingly straightforward. You receive:
- 100% of your weekly social welfare payment in year one
- 75% of your weekly social welfare payment in year two
The payment is treated as a continuation of your welfare, so you get it from your usual Intreo office on your usual day. There is no waiting period and no additional tax form to fill in for the BTWEA itself; the allowance is tax-free. Importantly, the allowance is intended to cover your personal living costs while the business gets going, not to fund equipment, fit-out or marketing. For that you look to the Enterprise Support Grant covered below.
Can I keep my extra benefits while on BTWEA?
In most cases, yes. Secondary benefits such as the Medical Card, Rent Supplement (where it still applies), and Fuel Allowance can usually be retained for as long as you remain on BTWEA, although the exact rules depend on your circumstances and household income. The simplest approach is to ask your Intreo Case Officer to confirm your full benefit position in writing before you formally start trading, so there are no surprises later.
What changes do I need to report while on BTWEA?
The scheme requires you to keep the Department informed of anything that materially changes your circumstances. The common ones to report are: ceasing or pausing the business, taking up paid PAYE employment alongside the self-employment, changes to your address, and changes to household income that affect any means-tested secondary benefit. Reporting promptly is in your interest; failing to report overpayments is the most common reason new business owners end up with an unwanted debt to the Department later on.
What is the Short-Term Enterprise Allowance (STEA) and who is it for?
The Short-Term Enterprise Allowance is the BTWEA’s cousin, designed for people who have recently lost their job and are claiming Jobseeker’s Benefit. Unlike BTWEA, there is no nine-month qualifying period; you can apply as soon as you start receiving Jobseeker’s Benefit. The payment runs for as long as your Jobseeker’s Benefit entitlement would have lasted, typically up to nine months. STEA is genuinely the fastest route from redundancy into self-employment for anyone with a viable business plan ready to go.
Practically, you apply through your Intreo office, with a written business plan and the same Case Officer approval as BTWEA. If you are eligible for both BTWEA and STEA, BTWEA is almost always the better choice because of its two-year duration.
How do PUP recipients qualify for these business supports now?
The Pandemic Unemployment Payment closed to new claims in 2022, but some people are still working through the welfare system after long PUP claims. If you are a former PUP recipient and you want to start a business, the practical step is to transfer to the appropriate jobseeker’s payment first. Once you are on Jobseeker’s Allowance or Jobseeker’s Benefit, the BTWEA or STEA eligibility rules above kick in as normal. Your Intreo office can advise on the cleanest transfer path; do not assume PUP time counts automatically toward BTWEA qualifying periods, because it usually does not.
What is the Enterprise Support Grant and what does it cover?
The Enterprise Support Grant (ESG) is the grant element that sits alongside BTWEA and STEA. While the allowances replace your personal income, the ESG helps you pay for the business itself. The grant is paid only to people who are already approved for BTWEA or STEA, and you need to provide a 20% matching contribution from your own funds for each item claimed. The total payable across the various measures is typically capped at around €2,500, although exceptional cases may go higher.
Typical eligible costs include:
- Accountancy fees and other business-related professional fees
- Equipment, tools, and minor fit-out costs
- Marketing materials, website development, and signage
- Job-specific training related to the business
- Office or workshop rental in the first six months
- Public liability and other essential business insurance
How does the 20% matching contribution work in practice?
If you want to claim €1,000 toward, say, a website, you contribute €200 of your own money and the grant pays the remaining €800. Each application is assessed item by item, so you can mix and match across the categories above up to the overall ceiling. Keep every invoice and receipt; the Department audits a sample of grants each year and reimbursement without supporting documentation is not possible.
What is the SURE income tax refund?
The Start-Up Refunds for Entrepreneurs (SURE) is a Revenue scheme rather than a Department of Social Protection one. If you have been in PAYE employment for at least four of the last five years and you invest your own savings into a new limited company you control, you can claim a refund of the income tax you paid on those earnings, going back up to six years. For many PAYE workers becoming founders, SURE is the single largest source of upfront capital available.
To qualify under Revenue’s SURE guidance, you must:
- Take up full-time employment in your new company as a director, working at least 30 hours a week
- Buy new ordinary share capital in the company with cash
- Keep the shares for at least three years
- Have earned most of your income through PAYE in recent years (the scheme excludes long-term self-employed people from claiming)
The refund is calculated against the income tax you actually paid, not the headline amount you invest. A skilled accountant will model this for you before you incorporate; the timing of the investment and the share issue affects how far back the refund can stretch.
What corporation tax relief is available for new companies?
Section 486C of the Taxes Consolidation Act provides a five-year relief from corporation tax for qualifying new companies, including a partial relief on employer’s PRSI. The relief is capped at €40,000 of corporation tax per year for each of the first five accounting periods, with marginal relief between €40,000 and €60,000. For a new company that breaks into profit in year two or three, this can wipe out the corporation tax bill entirely while it builds reserves.
The relief is automatic in the sense that it does not require a separate application, but it is restricted to specific trading activities and excludes certain professional services, dealing in land, and a few other categories. The detailed eligibility rules are published in Revenue’s manual on Section 486C. Speak to your accountant before you assume you qualify, especially if you are setting up a consulting company, because the rules around professional services can catch people out.
Summary: which supports apply to your situation?
| Support | Best for | Typical value | Apply through |
| Back to Work Enterprise Allowance | Long-term jobseekers becoming self-employed | 100% then 75% of welfare payment for two years | Intreo office |
| Short-Term Enterprise Allowance | Recently redundant workers on Jobseeker’s Benefit | Up to 9 months of welfare equivalent | Intreo office |
| Enterprise Support Grant | BTWEA or STEA recipients buying business essentials | Up to about €2,500 with 20% matching contribution | Intreo office |
| SURE income tax refund | PAYE workers investing savings into their own limited company | Refund of income tax paid in last 6 years | Revenue, via accountant |
| Section 486C corporation tax relief | New trading companies in their first 5 years | Up to €40,000 of corporation tax saved per year | Revenue, claimed in CT1 |
Where else should I look for support?
The five supports above are the main ones that ride on your social welfare status, but they sit inside a wider ecosystem of help. Your Local Enterprise Office is the most useful next port of call: free Start Your Own Business courses, free mentor sessions with experienced founders, and grants for feasibility, priming, and trading online. A feasibility study grant can fund a structured assessment of a new product or service before you commit savings to it; this is genuinely worth applying for if you are unsure whether the market is big enough.
Microfinance Ireland lends from €2,000 to €25,000 to small businesses that the banks have turned down, and the Credit Review Office offers free, independent reviews of credit decisions. For technology and export-focused ventures, Enterprise Ireland’s High Potential Start-Up route opens the door to feasibility funding and equity investment further down the line.
How to make these supports work together
The founders who get the most out of the system stack the supports. A typical sequence we see at Kinore is: a redundant PAYE worker transfers to Jobseeker’s Benefit, applies for STEA, draws an Enterprise Support Grant for their website and accounting fees, incorporates a limited company, claims SURE on the savings they invested, and then runs the first five years under Section 486C relief. Done carefully, that path turns a redundancy into a fully funded launchpad rather than a panic.
If you want a second pair of eyes on which supports apply to your particular situation, that is the conversation we have with new business owners every week. Book a no-pressure call and we will walk through the eligibility rules, the timing, and the paperwork with you before you commit.
Frequently asked questions
Can I claim BTWEA and SURE at the same time?
In principle yes, although the design of each scheme is slightly different. BTWEA continues your welfare payment as personal income while you are self-employed, while SURE refunds income tax already paid against an investment of your savings into a new limited company. Most people who use both apply for BTWEA first, then use SURE when they incorporate a company and invest capital into it. Speak to your accountant before you assume the timing works in your favour, because BTWEA recipients are usually sole traders rather than directors of limited companies.
Is the Back to Work Enterprise Allowance taxable?
No. BTWEA is treated as a social welfare payment and is not subject to income tax, USC or PRSI. The profits of the new business itself are of course taxable in the normal way.
How long does it take to get approved for BTWEA?
Most applications are processed within four to eight weeks of submitting a business plan to your Case Officer. The plan does not need to be a 60-page document; a clear, three or four page outline of the product or service, the target customer, the costs, and the projected income is usually enough. The Department wants to see that the business is realistic and that you have thought it through.
Can I use BTWEA to buy out an existing business?
Generally no. The scheme is intended for new businesses, not purchases of existing trading entities. There are limited exceptions for franchises and for buying assets to start something new from scratch; these are decided case by case by the Department.
What happens if my new business fails during BTWEA?
You can usually return to your original social welfare payment if the business ceases trading within the two years, subject to the standard eligibility rules. Tell your Intreo office as soon as you stop trading; the transition back is typically straightforward as long as you report changes promptly. The scheme is designed to take the cashflow risk out of starting a business, so a failed attempt does not exclude you from social welfare support afterward.
The information provided in this article is for general guidance and informational purposes only. It does not constitute professional accounting, tax, or financial advice, and should not be relied upon as a substitute for advice tailored to your specific circumstances. While we take care to ensure the content is accurate and up to date at the time of publication, legislation, tax rates, thresholds, and compliance requirements in Ireland can change.
