The Back to Work Enterprise Allowance (BTWEA) scheme encourages people getting certain social welfare payments to become self-employed. If you take part in the Back to Work Enterprise Allowance scheme (pdf) you can keep a percentage of your social welfare payment for up to 2 years.
A new Back to Work Scheme called the Short-Term Enterprise Allowance started in May 2009. There is no qualifying period for the Short-Term Enterprise Allowance. You can get immediate access to the allowance if you meet the qualifying conditions.
The website selfemployedsupports.ie has information on the services and entitlements available if you are self-employed and your income is reduced.
You can qualify for a Back to Work Enterprise Allowance (BTWEA) if you are:
and
or
*If you have been getting Jobseeker's Benefit you must have been unemployed for 2 years to qualify. However, if you have an underlying entitlement to Jobseeker's Allowance (this means that you would pass the means test and other criteria) and have been getting Jobseeker's Benefit for 12 months you can qualify for the allowance. Signing on for unemployment credits following your Jobseeker's Benefit does not count towards the qualifying period.
You may also be considered for the BTWEA if you are:
Qualifying periods
Periods of time spent in FÁS and Failte Ireland training courses, Community Employment, Tús, Social Economy Programme, Job Initiative, Rural Social Scheme, VTOS, Teagasc, FIT and Back to Education Schemes are accepted as qualifying periods provided you were entitled to a qualifying payment before starting on the study or training. The Department of Social Protection also counts time spent on the Community Services Programme provided you were getting a qualifying social welfare payment for at least half of the qualifying period.
Time spent on Supplementary Welfare Allowance or in direct provision can count towards the qualifying period for BTWEA as long as you establish an entitlement to a relevant payment before starting the BTWEA.
If you have previously participated in the BTWEA scheme and exhausted your entitlement, you can participate a second time after at least 5 years.
Find out more about the qualifying periods for Back to Work Enterprise Allowance.
The Technical Assistance and Training (TAT) fund is designed to help people getting the Back to Work Enterprise Allowance with certain costs involved starting a business. You do not have an automatic entitlement to TAT. Assistance from this fund must be approved by the Jobs Facilitator in your Social Welfare Local Office. Payments from the fund must be made directly to the provider of the service.
More information is available about becoming self-employed.
Employment grants from a County Enterprise Board (CEB) or Integrated Local
Development Companies do not affect your entitlement to the Back to Work
Enterprise Allowance.
If you qualify for the Back to Work Enterprise Allowance you can keep the following portion of your social welfare payment, including increases for a qualified adult and qualified children, for a maximum of 2 years:
If you took part in the Back to Work Enterprise Allowance scheme before 1 May 2009, you could keep the following portions of your social welfare payment, including increases for a qualified adult and qualified children:
You can keep your secondary benefits (apart from Rent or Mortgage Interest Supplement) for as long as you are getting the Back to Work Enterprise Allowance provided your household income is less than €317.43 gross per week. Household income includes your spouse's, civil partner's or cohabitant's income, but allows for PRSI and reasonable travel expenses. Income from the Back to Work Enterprise Allowance or the Short-term Enterprise Allowance is not taken into account for the purpose of the €317.43 weekly income limit but your income from work is taken into account.
You should check with the Department of Social Protection's representative (formerly known as the Community Welfare Officer) in your local health centre to see how your Rent Supplement or Mortgage Interest Supplement may be affected by your participation in the Back to Work Enterprise Allowance.
Secondary benefits include:
The Back to Work Enterprise Allowance is paid directly into your bank or building society account each week. The allowance cannot be paid into a mortgage account.
You must contact the Department of Social Protection immediately if your self-employment ends or you take up employment. You do not have to pay tax or PRSI on the Back to Work Enterprise Allowance but you may have to pay tax and PRSI on any income you get from self-employment.
To apply for the Back to Work Enterprise Allowance, complete application form BTW 2.
If you live in an area covered by a local Partnership Company or Integrated Local Development Company (ILDC), you should return form BTW 2 to the Enterprise Officer in your local Partnership or ILDC. If you do not live in a Partnership/ILDC Area, you should return form BTW 2 to the Jobs Facilitator in your Social Welfare Local Office.
The Enterprise Officer or Jobs Facilitator will look at your business proposal and may discuss certain aspects of it with you. You must not take up self-employment until you have received written approval from the Partnership/ILDC or Department of Social Protection.
If you are accepted on to the Back to Work Enterprise Allowance, you must register as self-employed with the Revenue Commissioners. You can find further information on self-employment from your local tax office.
The BTWEA is an administrative scheme. This means that you cannot appeal a
decision to the Social Welfare Appeals Office. However you can ask the
Department of Social Protection to review your application if you feel that you
have been wrongly refused the allowance.
If you live in an area covered by a local Partnership Company or Integrated Local Development Company (ILDC), you should apply to the Enterprise Officer in your local Partnership or ILDC.
If you do not live in Partnership/ILDC area, you should apply to the Jobs Facilitator in your Social Welfare Local Office.
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 9pm) or you can visit your local Citizens Information Centre.