Further job-creation measures included in Budget 2014
include:
· Retention
of the 9% VAT rate for the hospitality sector – to support and encourage
growth in small businesses in the tourism sector;
· Air
Travel Tax reduced to 0% from 1st April – to encourage the
development of new routes and therefore lead to more passengers and the creation
of additional jobs in the tourism sector;
· VAT
anti-fraud measures – to protect compliant business from unfair competition
by tackling the shadow economy.
Minister Noonan also announced a package of measures
aimed at supporting start-ups and growing businesses, including the
following:
· Start
Your Own Business Scheme (SYOB): This measure is being introduced to
encourage individuals who are long-term unemployed to start their own
unincorporated business. A two year exemption from income tax up to a maximum
of €40,000 per annum is being provided for individuals who have been unemployed
for at least 15 months prior to starting their own business;
· Capital
Gains Tax relief to encourage investment in new business;
· Removal
of the Employment and Investment Incentive from the Higher Earners
Restriction, to incentivise higher levels of investment in SMEs;
· Increasing the threshold for the Credit Review Office from
€500,000 to €3 Million;
· Supporting cash-flow in the small business sector by
increasing the VAT cash threshold from €1.25 Million to €2 Million;
· Building
Business Capacity – A training and mentoring programme consisting of 2 days
dedicated off site training tougher with export mentoring support, to enhance
SMEs business and financial capacity in relation to understanding and utilising
a broader range of financial products, as well as equipping them with the
necessary tools to make a strong business case when applying for credit. The
programme will be launched on a pilot basis with 1,000 SMEs taking part next
year;
· SME
Communications Strategy – to increase awareness of State supports amongst
SMEs. This strategy will also ensure that there is a greater awareness amongst
businesses of the soon to be re-launched credit guarantee scheme;
· A package
of improvements in the R&D tax credit aimed particularly at small Irish
companies.
“Through Budget 2014 we will be able to provide
continued supports for the small business sector – a sector that is central to
economic recovery, job creation and the future development of the Irish
economy.”
