Self-Employed Tax Deductions in Ireland: What You Can Claim

What expenses can I deduct ?

Business-Related Expenses

• Rent/Lease for Business Premises: If you rent an office or other business premises, the rent is deductible.
• Utility Bills: Costs for electricity, heating, water, and internet used for business purposes.
• Insurance: Premiums for business-related insurance policies, such as public liability, professional indemnity, and employer’s liability insurance.
• Office Supplies: Stationery, office equipment, and other consumables necessary for your business.

Travel and Transportation Expenses

• Business Travel: Costs for travel related to your business, including transportation (flights, trains, taxis), and lodging.
• Mileage: If you use your personal vehicle for business, you can deduct a mileage rate for business-related trips. The standard rates for 2024 are:
  • 0.41 euro per kilometre for the first 1,500 km
  • 0.22 euro per kilometre for distances over 1,500 km
• Parking and Tolls: Business-related parking charges and toll fees.

Equipment and Capital Purchases

• Depreciation: The cost of assets like computers, machinery, or vehicles can be written off over time, through a system called Capital Allowances. You may claim a percentage of the cost each year as a deduction.
• Repairs and Maintenance: If you need to repair or maintain any business-related equipment or vehicles, those expenses are deductible.

Professional Fees

• Accountants/Tax Advisors: Fees paid to accountants, bookkeepers, or tax advisors for managing your business accounts or tax returns.
• Legal Fees: Fees for legal services directly related to your business.

Employee/Contractor Costs

• Wages and Salaries: If you employ staff or pay subcontractors, these costs are deductible.
• Pension Contributions: Contributions to employee pension schemes can be deducted.
• Training and Development: Costs for professional development or training programs relevant to your business.

Marketing and Advertising

• Advertising Costs: Expenses for online or offline advertising, including websites, Google Ads, social media promotions, brochures, etc.
• Website and Domain Hosting: Fees related to maintaining a website for your business.

Interest and Bank Charges

• Loan Interest: Interest paid on business loans or credit cards is deductible.
• Bank Fees: Charges from business accounts, including transaction fees and overdraft fees.

Bad Debts

• If a customer owes you money and the debt becomes uncollectible, you can claim a deduction for the amount of bad debt.

Home Office Expenses (if applicable)

• If you work from home, you can claim a proportion of your home expenses, such as heating, electricity, and internet, based on the percentage of your home used for business. This is subject to certain conditions and calculations.

Subscriptions and Memberships

• Subscriptions to professional associations or industry publications related to your business are deductible.

Charitable Donations

• If you make charitable donations, those may be deductible, particularly if the charity is a registered organization in Ireland.

Miscellaneous Business Expenses

• Bank Charges: Business-related bank charges and fees.
• Phone/Communication: If used for business, mobile or landline communication costs are deductible.
• Postage and Delivery: Costs of sending business-related mail or packages.

Important Considerations:

• Mixed Use: If you use an asset or service for both personal and business purposes, only the business portion is deductible. For example, if you use your home internet for both work and personal use, you must apportion the cost.
• Receipts and Records: It’s essential to keep accurate records and receipts of all your business expenses. This will be required if you are audited by the Revenue Commissioners.

By claiming these expenses, you can reduce your taxable income and, as a result, lower the amount of tax you owe.