Understanding which expenses you can deduct is essential for reducing your tax bill as a sole trader in Ireland. Here’s some of the common and often valuable deductions:
- Home Office Costs:
- Portion of rent, heating, and electricity used for business.
- Must calculate the percentage of your home used for work.
- Motor Expenses:
- Running costs such as fuel, insurance, repairs based on business mileage over total mileage.
- Sole traders can’t claim mileage (if using personal car for business) but can claim actual expenses incurred.
- Phone and Internet:
- Business use of mobile phones and broadband.
- Must apportion cost if also used personally.
- Professional Fees and Training:
- Accountancy, legal, and professional advice directly related to your business.
- Work-related training courses, provided they maintain or improve your existing skills.
- Subscriptions to relevant trade associations or professional bodies.
- Office Supplies and Equipment:
- Computers, printers, stationery, and small office equipment.
- Larger items may qualify for a tax allowance over eight years.
- Marketing and Advertising:
- Website costs, social media ads, promotional materials, and networking event fees.
- Insurance:
- Public liability, professional indemnity, and other necessary business insurance policies.
- Wages and Subcontractor Payments:
- Payments to employees and properly classified subcontractors.
Key Tip: Accurate record-keeping is essential. Keep receipts, invoices, and clear evidence of how costs relate to your business.
FastTax.ie can help you claim all allowable expenses correctly and ensure your return is Revenue-proof.
