Get approval before you start trading: if you register as self-employed first, you lose it. Your Fuel Allowance and medical card can continue if you still pass the means test.
Quick facts
- Year 1
- 100% of your payment
- Year 2
- 75%
- Tax
- No tax, PRSI or USC on it
- Qualifying time
- 9 months on a qualifying payment
- Start-up grant
- Up to €2,500 (ESG)
- Approval
- In writing, before you start
Who qualifies
You're under 66, setting up a new business approved by an Employment Personal Adviser and a Local Development Company, and "Getting Jobseeker's Benefit (JB)* or Jobseeker's Allowance (JA) continuously for at least 9 months (234 days)."
Nine months on these also qualifies: Jobseeker's Transitional, One-Parent Family Payment, Blind Pension, Disability Allowance, full-rate Carer's Allowance (after caring ends), Farm Assist, Invalidity Pension and more. Time on CE, Tús, BTEA and some training counts.
What you get
"100% for the 1st year 75% for the 2nd year" of your payment, including increases for a partner and children. "You do not have to pay tax, PRSI or Universal Social Charge on the Back to Work Enterprise Allowance". Your business profits are taxed as normal.
"You can keep your extra (or secondary) benefits for as long as you are getting the BTWEA provided you continue to satisfy the means test."
The Enterprise Support Grant
"The ESG can pay a total of €2,500 in any 24-month period." It covers equipment, tools, marketing, insurance, websites, training and accountancy, in set amounts. "You must be able to make a matching contribution of at least 10% to access grant support." It doesn't cover vehicles, rent or stock.
The rules
"You must not take up self-employment until you have received written approval from the DSP." "You are not allowed to enter into paid employment as an employee, either full-time or part-time, while getting BTWEA."
"If you have previously participated in the BTWEA scheme and used up your entitlement, you can participate a second time after at least 5 years."
How to apply
Meet an Employment Personal Adviser at your Intreo Centre and complete form BTW 2 with your business proposal. You'll usually be referred to your Local Development Company. Start within 12 weeks of approval, and register as self-employed with Revenue.
"The BTWEA is an administrative scheme. This means that you cannot appeal a decision to the Social Welfare Appeals Office." You can ask for a review.
Common questions
How much is the Back to Work Enterprise Allowance?
100% of your qualifying social welfare payment for the first year and 75% for the second, including increases for dependants.
Who can get the Back to Work Enterprise Allowance?
People under 66 who've been on a qualifying payment such as Jobseeker's Allowance, One-Parent Family Payment or Disability Allowance for at least 9 months, with an approved new business.
Is the Back to Work Enterprise Allowance taxable?
No. You don't pay tax, PRSI or USC on the allowance itself, but your business income is taxed.
How much is the Enterprise Support Grant?
Up to €2,500 in any 24-month period, with a matching contribution of at least 10%.
Can I work as an employee on BTWEA?
No. You can't take up paid employment, full-time or part-time, while getting it.