Back to Work Enterprise Allowance
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.
How do I qualify for the Back to Work Enterprise Allowance?
You can qualify for a Back to Work Enterprise Allowance (BTWEA) if you are:
- Setting up as self-employed in a business that has been approved in
advance in writing by a Job Facilitator or Partnership Company (see 'How do
I apply' below)
and
- Getting one of the qualifying payments listed below for at least 12 months
- Jobseeker's Allowance
- Jobseeker's Benefit (with an underlying entitlement to Jobseeker's Allowance)*
- One-Parent Family Payment
- Blind Pension
- Disability Allowance
- Carer's Allowance (having stopped caring duties)
- Farm Assist
- Invalidity Pension
- Incapacity Supplement
- Pre-Retirement Allowance
- Widow's, Widower's or Surviving Civil Partner's (Non-Contributory) Pension
- Deserted Wife's Benefit or Allowance
- Prisoner's Wife's Allowance
or
- Illness Benefit for 3 years
*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:
- A dependent adult of a person eligible to claim the BTWEA. This involves the person who is eligible for the BTWEA transferring his or her entitlements to their spouse, civil partner or cohabitant. (In other words, the spouse, civil partner or cohabitant becomes self-employed and the original claimant becomes the qualified adult on the BTWEA). If the original claimant is entitled to credits, he or she can continue to claim them. However BTWEA cannot be paid at the same time as another social welfare payment so if the original claimant (now a qualified adult) decides to claim another payment you must stop claiming BTWEA.
- A person released from prison who satisfies the eligibility criteria for the scheme
More information on the qualifying periods for Back to Work Enterprise Allowance is available.
Can I get any other help with starting my business?
The Technical Assistance and Training (TAT) fund is designed to help people getting the Back to Work Enterprise Allowance with certain costs involved in 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.
Your local Jobs Facilitator or Enterprise Officer (see below for contact details) can give you more information on sources of help and funding. You can read more about supports for self-employment in our documents on Setting up a business and Sources of information.
How much BTWEA can I get?
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 2 years:
- 100% for the 1st year
- 75% for the 2nd year
Employment grants from a County or City Enterprise Board (CEB) or Integrated Local Development Company do not affect your entitlement to the Back to Work Enterprise Allowance.
Do I pay tax?
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. Even if you do not have to pay PRSI (because your income from self-employment is below the limits) you should consider paying voluntary contributions to protect your entitlement to benefits in the future.
What about other benefits?
You can keep any additional benefits (apart from Rent or Mortgage Interest Supplement) for as long as you are getting the BTWEA 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 administering Supplementary Welfare Allowance 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 Scheme.
What happens if my business does not succeed?
If your business does not work out you can apply for another social welfare payment in the normal way.
If you have previously participated in the BTWEA scheme and exhausted your
entitlement, you can participate a second time after a period of at least 5
years has elapsed.
How do I apply?
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 Company or Integrated Local Development Company (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 the Department of Social Protection.
If you are accepted on to the Back to Work Enterprise Allowance Scheme, you must register as self-employed with the Revenue Commissioners.
The Back to Work Enterprise Allowance will be 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.
Can I appeal a decision?
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.View this site
Contact Us
You can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 9pm) and the Money Advice and Budgeting Service (MABS) on 0761 07 2000 (Monday to Friday, 9am to 8pm)
