No Frontiers, The Important Details For Startups
By Tim McCarthy, McCarthy Accountants
As explained in a previous post about No Frontiers, Enterprise Ireland are offering financial support of up to €15,000 for entrepreneurs and early stage start-up companies who intend to create or develop an innovative and sustainable business (manufacturing, internationally traded service, or domestic service with potential to trade internationally). The New Frontiers Programme is aimed to assist entrepreneurs/ start-ups in developing their idea from a business proposition to a robust business plan.
McCarthy Accountants have been in touch with Enterprise Ireland and have got more details about this programme which we are sharing here and in the Linkedin Group New Frontiers.
The Programme is split into 3 Phases:
1. Phase 1 – Test the market potential of the business proposition (6/8 Weeks)
- This phase will consist of a series of Workshops, one two one sessions and master classes will be delivered over a 6 or 8 week period.
- Please note this phase is part-time and non-funded.
- Phase 1 is aimed at determining the business case (feasibility)
- Commencing in late March 2012
2. Phase 2 – Business Planning (6 months)
- Will develop an investor ready Business Plan – The objective of this phase is the development of the business plan.
- If offered a place on Phase 2, applicants will receive intensive support for six months to develop both their own skills and to progress the development of your business proposition. This will entail full-time participation in workshops, mentoring and regular reviews.
- This phase is full time for 6 months – full time commitment is required.
- Intensive supports including training, mentoring, hot desking, etc.
- There is €15,000 monetary support available for eligible projects, paid to the individual
- It is envisaged that a payment of €2,500 will be paid each month over the 6 month period
- There are incomes that cannot be drawn down while the individual is in receipt of this €15,000 support i.e. back to work allowance, employment grants, any type of double funding.
- Enterprise Ireland are currently preparing a list of these incomes and we will circulate it on the Linkedin Group as soon as the list is made available.
- The developmental reviews are carried out by Enterprise Ireland and the programme management team
The tax implications of the €15,000 additional income will be responsibility of the participant. Each participant’s circumstances will differ.
|In respect of €15,000 Financial Support Receivable over 6 Months from Enterprise Ireland*|
|Gross Taxable Income for 6 months from Enterprise Ireland||15,000||2,500||per month|
|Income Tax €15,000 @ 20%||3,000|
|USC||0->10036||€ 10,036 @ 2%||201|
|10036->16016||€ 4,964 @ 4%||199||199|
|PRSI €15,000 @ 4%||600|
|Total Income Tax + USC + PRSI||3,799||633||per month|
|Less Personal Tax Credit for 6 months €1650/2||825||138||per month|
|Total Deductions||2,974||496||per month|
|Net Income||12,026||2,004||per month|
|*This Income Tax Computation assumes the recipient has no other income from any other source|
|other than the Financial Support of €15,000 from Enterprise Ireland|
3. Phase 3 Business Development – Executing the Business Plan
- This phase is essentially about executing the plan.
- Provides customised supports focused on Business Growth to help promoters acquire first clients, investment or enter export markets.