What Business Expenses can I claim?
When calculating the profit for your business, you may be able to claim a deduction for expenses incurred.
What expenses can be claimed?
The expenses that you can claim for are those that are directly related to the running of your business such as:
- the purchase of goods for resale
- employees' pay
- rent and bills for your business premises
- running costs for vehicles or machines that you use in your business
- lease payments for vehicles or machines that you use in your business
- accountancy fees
- interest payments for money you borrowed to finance your business.
Can I claim initial Start-up costs?
You may also claim for expenses you had before your business started trading such as:
- accountancy fees,
- advertising costs,
- costs of feasibility studies,
- costs of preparing business plans, and
- rent paid for the premises from which the trade or profession operates.
The deduction is available in respect of pre-trading expenses which are incurred in the three years prior to commencement of the trade.
Can I claim VAT?
If you are registered for VAT, you can make a double claim:
1) the VAT-exlusive amount of a business expense can be deducted from your business profit to reduce tax, and
2) the VAT amount can be claimed directly from Revenue as a refund or offset against VAT due on your sales.
Can I claim the cost of Equipment?
You cannot claim a deduction for capital expenditure when calculating your profit. Capital expenditure is money you spend on buying or maintaining computer equipment, machinery, office furniture, etc. for your business. You may be able to claim capital allowances at a rate12.5% per year on some of this expenditure.
What expenses cannot be claimed?
You can not claim expenses for any item that is not fully related to the running of your business such as:
- clothing (except protective clothing)
- cash drawings
- business entertainment expenses
- food or travel expenses
However, you can pay the company employees' expenses when they travel on business journeys. You can also pay subsistence if employees are working away from their normal place of work.
Expenses for both business and private use
If you spend money on something that is for both business and private use, you can claim a deduction for part of the expense. This would include items such as phone bills, motor expenses and rent. You must work out how much of the expenditure was for business purposes and claim a deduction for that amount only.
How to claim the Business Expenses?
If you require any help with claiming your Business expenses, please leave your email address, we will contact you with all information you need. You can also consider our monthly support package at €75+vat/month.
Start-up Company Accounts
€75+vat/month
Included is:
- Bi-monthly Bookkeeping
- Bi-monthly VAT3 returns
- Company Director Payroll
- Annual accounts
- CRO B1 Annual return
- Corporation Tax return
- Unlimited consultations with Chartered Tax Accountant
You may also find useful:
- Corporation Tax Return - from €120
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