Budget continues to Support Business – Key to recovery for all citizens.

Further job-creation measures included in Budget 2014

· 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;

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

· 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

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

“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