Accounting & Tax Glossary
Whether you’re a business owner or individual navigating your finances, our glossary provides clear, concise definitions of key accounting terms. From ‘Abridged Accountants’ to ‘Writing Down Allowance’, we’ve got you covered. Our aim is to demystify the world of accounting, making it accessible and understandable for everyone. So, dive in and start exploring the language of accounting today.
A
- Abridged accounts
- Accelerated Capital Allowances (ACA)
- Accountancy software
- Accounts payable
- Accounts receivable
- Accrual
- Accruals basis
- Agent
- Annual Exempt Amount
- Annual general meeting (AGM)
- Assets
- Audit
- Auto-enrolment
B
C
- Capital Acquisitions Tax (CAT)
- Capital allowances
- Capital expenditure
- Capital Gains Tax (CGT)
- Capital introduced
- Cash accounting
- Cash flow
- Chart of accounts
- Close company
- Companies Registration Office (CRO)
- Company
- Comparative mean
- Corporation Tax (CT)
- Cost of goods sold (COGS)
- Cost of sales
- Credit
- Creditors
- Current assets
D
- Debit
- Debtors
- Deferred income
- Deferred tax
- Depreciation
- Dext
- Director
- Directors' loan account
- Directors’ report
- Dividend
- Dormant company
- Double-entry bookkeeping
- Drawings
E
F
G
I
L
M
N
O
P
- P45
- P60
- Partnership
- Pay As You Earn (PAYE)
- Pay Related Social Insurance (PRSI)
- Person with Significant Control (PSC)
- Personal tax credit
- Phased Payment Arrangement (PPA)
- Preliminary tax payments
- Prepayments
- Profit
- Profit and loss account
Q
R
- RBO
- Relevant Contracts Tax (RCT)
- Relevant Legal Entity
- Retained earnings
- Revenue
- Revenue’s digital tax system
S
- Savings account
- Share capital
- Shareholder
- Small company
- Sole trader
- Stakeholder
- Statement of financial position
- Stock
T
U
V
W
X
- What are abridged accounts?
-
Abridged accounts are a simplified version of financial statements that small and micro companies in Ireland can file with the Companies Registration Office (CRO). These accounts provide a condensed financial overview, omitting detailed breakdowns of assets, liabilities, and net profit figures. Businesses must meet specific criteria to qualify for abridged accounts.
- What is the Accelerated Capital Allowance (ACA)?
-
Businesses can claim Accelerated Capital Allowances (ACA) on qualifying energy-efficient equipment, allowing full deduction in the first year.
- What is accountancy software?
-
Accountancy software helps Irish businesses manage their financial records efficiently. Popular solutions like Bright Accounts, Big Red Cloud, and Sage automate bookkeeping tasks, including bank reconciliations, invoice tracking, and tax calculations. These tools support compliance with Irish Revenue requirements and improve financial forecasting.
- What does accounts payable mean?
-
Accounts payable refers to outstanding payments a business owes to suppliers. These liabilities appear on the balance sheet and must be carefully managed to maintain healthy cash flow. Businesses must ensure timely payments to avoid penalties and maintain good supplier relationships.
- What does accounts receivable mean?
-
Accounts receivable represents money owed to a business by customers for goods or services provided. These amounts are recorded as assets on the balance sheet. Businesses often use automated invoicing and payment reminder systems to improve collection efficiency and reduce overdue balances.
- What is an accrual?
-
An accrual is an accounting adjustment that ensures expenses are recorded in the correct financial period, even if they haven’t been paid yet. For example, if a business incurs electricity costs in December but pays the bill in January, the expense is accrued in December’s accounts. This method aligns with Ireland’s financial reporting standards.
- What is the accruals basis?
-
The accruals basis of accounting records income and expenses based on when they occur rather than when cash is received or paid. This approach ensures financial statements reflect the true financial position of an Irish business, as required by Revenue guidelines.
- What is an agent?
-
An agent is a professional, such as an accountant or tax advisor, who acts on behalf of a business or individual in dealings with Revenue. To authorize an agent, businesses may need to provide a Tax Agent Link or complete relevant forms, such as the TR1 or TR2 for tax registration.
- What is the Annual Exempt Amount (CGT)?
-
In Ireland this is the Capital Gains Tax (CGT) exemption threshold. This is the amount of capital gains an individual can make before tax is payable. The threshold is set by Revenue and may change periodically. It is currently 1,270 per person per annum.
- What is an annual general meeting (AGM)?
-
An AGM is a mandatory yearly meeting for Irish companies where shareholders review financial performance, discuss business strategy, and vote on key decisions. Private limited companies may be exempt from holding an AGM if all shareholders agree to dispense with it.
- What are assets?
-
Assets are resources owned by a business that provide economic value. In Ireland, assets are categorized as fixed, current, or intangible, and they appear on the balance sheet. Examples include property, equipment, and intellectual property.
- What is an audit?
-
An audit is an independent review of a company’s financial statements to ensure accuracy and compliance with Irish accounting standards. Certain businesses, such as large companies and charities, must undergo audits, while smaller businesses may qualify for exemptions.
- What is auto-enrolment?
-
Auto-enrolment is a planned pension scheme in Ireland that will require employers to automatically enrol eligible employees into a workplace pension. The scheme aims to improve retirement savings and is expected to be introduced in the coming years. This current expected date is 1st January 2026.
- What is a balance sheet?
-
A balance sheet is a financial statement that provides a snapshot of a business’s financial position at a specific date. It lists assets, liabilities, and equity, helping Irish businesses assess their financial health. Companies must submit balance sheets as part of their annual financial statements to the CRO.
- What are benefits in kind?
-
Benefits in kind are non-cash perks provided to employees, such as company cars, health insurance, or subsidized accommodation. In Ireland, these benefits are subject to Benefit-in-Kind (BIK) tax, which employers must report to Revenue.
- What is bookkeeping?
-
Bookkeeping involves recording financial transactions, including income and expenses, to maintain accurate business records. Irish businesses must keep proper books of account to comply with tax regulations and facilitate financial reporting.
- What is Business Asset Disposal Relief?
-
In Ireland, the equivalent of Business Asset Disposal Relief is Retirement Relief or Entrepreneur Relief, which reduces the Capital Gains Tax rate when disposing of qualifying business assets. These reliefs help business owners minimize tax liabilities when selling their enterprises.
- What is Capital Acquisitions Tax (CAT)?
-
Capital Acquisitions Tax is Ireland’s equivalent to Inheritance Tax. It applies to gifts and inheritances exceeding the tax-free threshold, with a standard rate of 33%. Certain reliefs, such as agricultural and business relief, may reduce the tax liability.
- What are capital allowances?
-
Capital allowances allow Irish businesses to claim tax relief on qualifying assets, such as machinery, vehicles, and equipment. Instead of deducting these costs as expenses, businesses apply capital allowances to reduce taxable income. Different types of allowances exist, including the Accelerated Capital Allowance for energy-efficient equipment.
- What is capital expenditure?
-
Capital expenditure refers to the purchase of significant assets, such as machinery, vehicles, or property, that a business will use over multiple years. These costs are treated differently from day-to-day expenses, as they are capitalized and depreciated over time in accordance with Irish tax regulations.
- What is Capital Gains Tax (CGT)?
-
Capital Gains Tax is a tax on profits made from selling, gifting, or exchanging certain assets. Individuals and businesses may be liable for CGT when disposing of property, shares, or other investments. Some exemptions and reliefs, such as Entrepreneur Relief and Retirement Relief, may apply.
- What is capital introduced?
-
Capital introduced refers to funds that a sole trader or partnership owner injects into their business. This can include personal savings or external investments used to support business operations.
- What is cash accounting?
-
Cash accounting is a method where businesses record income and expenses based on actual payment dates rather than invoice dates. This differs from accrual accounting, which recognizes transactions when they occur. In Ireland, small businesses may opt for cash basis accounting for tax purposes.
- What is cash flow?
-
Cash flow represents the movement of money in and out of a business, affecting its ability to meet financial obligations. Managing cash flow effectively is crucial for business survival, and businesses often use forecasting tools to plan for future expenses and revenue.
- What is a chart of accounts?
-
A chart of accounts is a structured list of financial categories used to record transactions. These accounts form the basis of a company’s profit and loss statement and balance sheet. For example, an account labelled "Insurance" would track all insurance-related payments.
- What is a close company?
-
In Ireland, a close company is a private limited company controlled by five or fewer participators, or one where most shareholders are directors. Close companies may be subject to specific tax rules, including restrictions on certain expense deductions.
- What is the Companies Registration Office (CRO)?
-
The Companies Registration Office (CRO) oversees company incorporation, dissolution, and the filing of statutory documents. Irish businesses must submit annual returns and financial statements to the CRO.
- What is a company?
-
A company, or limited company, is a separate legal entity distinct from its owners. In Ireland, companies must register with the CRO and comply with corporate governance and tax regulations.
- What does comparative mean?
-
Comparative refers to financial data from a previous period used for comparison. Businesses often analyse comparative figures to assess performance trends and make informed decisions.
- What is Corporation Tax (CT)?
-
Corporation Tax is the tax Irish companies pay on their profits. The standard rate is 12.5% for trading income, while a higher rate applies to certain passive income sources. Ireland’s corporate tax regime is a key factor in attracting foreign investment.
- What are cost of goods sold (COGS)?
-
Cost of goods sold includes direct costs associated with producing or purchasing goods for resale. This may include raw materials, stock purchases, and wages for production staff. Understanding COGS helps businesses set competitive pricing and maintain profitability.
- What are cost of sales?
-
Cost of sales refers to expenses incurred in delivering a service or product to customers. Service-based businesses typically use this term instead of COGS. It includes wages, materials, and other direct costs.
- What does credit mean?
-
In accounting, credit is a fundamental concept in double-entry bookkeeping. A credit entry increases liabilities and revenue while decreasing assets and expenses.
- What are creditors?
-
Creditors are individuals or businesses to whom a company owes money. This includes suppliers, lenders, and other entities that have provided goods or services on credit.
- What are current assets?
-
Current assets are short-term resources expected to be used or converted into cash within one financial year. Examples include stock, accounts receivable, and cash reserves.
- What does debit mean?
-
In accounting, debit is a fundamental concept in double-entry bookkeeping, paired with credit. A debit entry increases expenses and assets while decreasing income and liabilities. In manual ledger systems, debits are recorded on the left-hand side.
- What are debtors?
-
Debtors are assets representing amounts owed to a business by customers or other entities. Trade debtors (accounts receivable) and other outstanding balances are recorded as assets on the balance sheet.
- What is deferred income?
-
Deferred income refers to revenue received in advance for goods or services to be delivered in a future financial period. For example, if a business receives payment at the end of the year for services to be provided next quarter, this income is deferred and recorded as a liability on the balance sheet.
- What is deferred tax?
-
Deferred tax is an accounting adjustment reflecting future tax liabilities or benefits arising from timing differences between accounting profits and taxable profits. It does not represent an immediate tax payment but ensures financial statements align with Irish tax regulations.
- What is depreciation?
-
Depreciation accounts for the gradual reduction in value of fixed assets over time. Businesses in Ireland apply depreciation to assets such as machinery and vehicles, spreading the cost over their useful economic life. This ensures financial statements accurately reflect asset usage.
- What is Dext?
-
Dext is a cloud-based accounting tool that helps businesses automate expense tracking. Formerly known as Receipt Bank, it allows users to capture receipts and invoices digitally, integrating with accounting software for efficient financial management.
- What is a director?
-
A director is responsible for managing a company and making strategic decisions. In Ireland, directors have legal duties under the Companies Act, ensuring compliance with corporate governance and financial regulations. Directors may be shareholders or external professionals appointed for their expertise.
- What is the directors' loan account?
-
A directors’ loan account tracks money withdrawn from a company by a director that is not salary or dividends. Since a company is a separate legal entity, any funds taken must be repaid or properly accounted for in financial statements.
- What is a directors’ report?
-
A directors’ report is a mandatory statement included in a company’s financial accounts, confirming the directors in office during the financial period. Some Irish companies must provide additional disclosures depending on their size and structure.
- What is a dividend?
-
A dividend is a distribution of company profits to shareholders. In Ireland, dividends are subject to Dividend Withholding Tax (DWT), and companies must issue dividend vouchers to shareholders for tax reporting purposes.
- What is a dormant company?
-
A dormant company in Ireland is one that has had no significant transactions during the financial year. While dormant companies must still file annual returns with the Companies Registration Office (CRO), they may not need to submit a Corporation Tax return.
- What is double-entry bookkeeping?
-
Double-entry bookkeeping ensures every financial transaction has two corresponding entries: a debit and a credit. This system maintains accurate financial records and is fundamental to Irish accounting practices.
- What are drawings?
-
Drawings refer to money withdrawn from a business by a sole trader or partner for personal use. In limited companies, similar transactions are recorded as directors’ loans rather than drawings.
- Who are EI?
-
Enterprise Ireland is the Irish government agency responsible for supporting Irish businesses in the manufacturing and internationally traded services sectors. It helps companies start, grow, innovate, and expand into global markets by providing funding, mentorship, and business development resources.
- What is the Employment Investment Incentive Scheme (EIIS)?
-
The Employment Investment Incentive (EII) provides tax relief to investors who purchase shares in qualifying Irish businesses, encouraging investment in small enterprises.
- What is equity?
-
Equity represents the ownership interest in a company, calculated as assets minus liabilities. It reflects the value retained by shareholders and is a key financial metric in business accounting.
- What are fixed (tangible) assets?
-
Fixed assets are long-term resources such as property, machinery, and vehicles that provide economic value over multiple financial periods. These assets are recorded on the balance sheet rather than expensed immediately.
- What is a Form 11?
-
A Form 11 is required for individuals who are considered chargeable persons for self-assessment tax purposes. This includes: • Self-employed individuals who earn income outside of the PAYE system. • Individuals with rental income or other non-PAYE earnings exceeding €30,000 gross or €5,000 net. • Proprietary directors, meaning those who own shares in a company they work for. • Individuals granted share options or those who opened a foreign bank account in the relevant tax year. • Anyone liable for Capital Gains Tax, as the self-assessment system applies to all individuals, including directors.
- What is a Form CT1?
-
Form CT1 is the Corporation Tax return that companies must file with Revenue to report financial results and calculate tax liabilities.
- What is the general ledger?
-
A general ledger is a comprehensive record of all financial transactions within a business. It provides detailed insights into income, expenses, and tax codes, supporting accurate financial reporting.
- What are general partners?
-
General partners are individuals responsible for managing a partnership and have unlimited liability for its debts. This contrasts with limited partners, who have restricted liability.
- What does going concern mean?
-
Going concern is an accounting principle assuming a business will continue operating for at least 12 months. If there are doubts about financial sustainability, a disclosure may be required in financial statements.
- What is goodwill?
-
Goodwill represents the intangible value of a business, such as brand reputation and customer relationships. When a business is sold, goodwill is often included in the valuation.
- What is gross profit?
-
Gross profit is the revenue remaining after deducting direct costs associated with producing goods or services. It is a key financial metric used to assess profitability and pricing strategies.
- What is an income statement?
-
An income statement, also known as a profit and loss account, summarizes a business’s income and expenses over a financial period. It includes gross and net profit figures and is a key component of financial statements submitted to the Companies Registration Office (CRO).
- What is income tax (IT)?
-
Income tax in Ireland is levied on earnings from employment, self-employment, rental income, and other taxable sources. It is collected through the Pay As You Earn (PAYE) system for employees or via self-assessment for self-employed individuals.
- What is incorporation?
-
Incorporation is the process of registering a business as a limited company with the Companies Registration Office (CRO). Once registered, the company receives a certificate of incorporation, confirming its legal existence.
- What are intangible assets?
-
Intangible assets are non-physical resources that provide long-term value to a business, such as goodwill, brand reputation, and intellectual property. These assets are recorded on the balance sheet.
- What is inventory?
-
Inventory, also known as stock, includes raw materials, work-in-progress, and finished goods held for resale. Businesses conduct annual valuations to ensure accurate financial reporting.
- What is LEO?
-
LEO stands for Local Enterprise Office, which is a government-supported network in Ireland that helps small businesses and entrepreneurs start, grow, and develop their enterprises. There are 31 Local Enterprise Offices across Ireland, each offering advice, training, financial supports, and mentoring to businesses.
- What are liabilities?
-
Liabilities represent amounts owed by a business, including loans, accounts payable, and tax obligations. They are recorded on the balance sheet.
- What is a limited company?
-
A limited company is a separate legal entity registered with the CRO. It can be limited by shares or by guarantee, providing financial protection to its owners.
- What is limited liability?
-
Limited liability protects business owners from personal responsibility for company debts. In Ireland, limited companies and limited partnerships offer this safeguard.
- What are limited partners?
-
Limited partners invest in a partnership but do not participate in management. Their liability is restricted to their financial contribution.
- What is a limited partnership?
-
A limited partnership consists of at least one general partner, who manages the business, and one limited partner, who provides financial backing. Limited partnerships must register with the CRO.
- What is a loss?
-
A loss occurs when a business’s expenses exceed its income. New businesses may experience losses due to startup costs, while established businesses must assess financial performance to ensure sustainability.
- What is LPT?
-
Local Property Tax (LPT) is an annual tax charged on residential properties in Ireland. It is self-assessed, meaning property owners determine the market value of their property and calculate the tax owed accordingly.
- What is a micro-entity?
-
A micro-entity is a very small private limited company in Ireland with turnover, assets, and employees below specific thresholds set by the Companies Registration Office (CRO). Micro-entities have simplified financial reporting requirements compared to small and larger companies.
- What are net assets?
-
Net assets represent a business’s total assets minus liabilities, equivalent to equity. A negative net asset balance indicates financial difficulties, while positive net assets reflect a stable financial position.
- What is net profit?
-
Net profit is the amount remaining after deducting expenses and taxes from income. It is also known as operating profit and is a key indicator of business performance.
- What are non-current assets?
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Non-current assets include long-term investments, fixed assets, and intangible assets that are not easily converted to cash within a year.
- What is operating profit?
-
Operating profit measures a business’s efficiency by calculating income minus expenses before tax.
- What are overhead costs?
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Overhead costs are ongoing expenses required to run a business, such as utilities, insurance, and rent.
- What is a P45 equivalent in Ireland?
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In Ireland, the equivalent of the old P45 is the cessation certificate, which employers issue when an employee leaves their job.
- What is a P60 equivalent in Ireland?
-
Ireland no longer issues P60s. Instead, employees can access their Employment Detail Summary through Revenue’s online system.
- What is a partnership?
-
A partnership is a business structure where two or more individuals share responsibility, liability, and profits. Partnerships must register with Revenue and file tax returns.
- What is Pay As You Earn (PAYE)?
-
PAYE is Ireland’s system for deducting income tax and PRSI from employees’ wages, ensuring tax compliance.
- What is Pay Related Social Insurance (PRSI)?
-
PRSI is Ireland’s national Insurance. It is paid by employees, employers, and self-employed individuals to qualify for state benefits, including pensions and social welfare. Different PRSI classes apply depending on employment status.
- What is a Person with Significant Control (PSC)?
-
A PSC is an individual who owns or controls a company. Irish companies must report PSCs to the CRO.
- What is the personal tax credit?
-
Tax credits in Ireland reduce the amount of tax you owe, directly lowering your tax bill rather than just reducing taxable income. They are applied after your tax is calculated, meaning they provide a direct financial benefit. The most common tax credits in Ireland are the Personal Tax Credit and the Employee Tax Credit.
- What is a Phased Payment Arrangement (PPA)?
-
A Revenue Payment Arrangement, also known as a Phased Payment Arrangement (PPA), is a system provided by Ireland's Revenue Commissioners that allows taxpayers to repay outstanding tax debts in instalments over a set period.
- What are preliminary tax payments?
-
Preliminary tax payments in Ireland are advance payments toward income tax, like the payments on account. Preliminary tax is an estimate of the Income Tax, Pay Related Social Insurance (PRSI), and Universal Social Charge (USC) that self-employed individuals and certain companies in Ireland must pay for the current tax year.
- What are prepayments?
-
Prepayments are expenses paid in advance for future periods, ensuring accurate financial reporting.
- What is profit?
-
Profit is the amount by which income exceeds expenses. Businesses track gross profit, operating profit, and net profit.
- What is a profit and loss account?
-
A profit and loss account, or income statement, summarizes a business’s financial performance over a period.
- What is QuickBooks?
-
QuickBooks is a bookkeeping software provider used by businesses in Ireland to manage financial records. It offers cloud-based solutions with features such as automatic bank feeds, invoice reminders, and transaction categorization. While QuickBooks is widely used, Irish businesses also rely on alternatives like Bright Accounts, XERO and Big Red Cloud.
- What is RBO?
-
In Ireland, RBO stands for the Central Register of Beneficial Ownership of Companies and Industrial and Provident Societies. It is a government database that records information about the natural persons who ultimately own or control companies and societies.
- What is the Relevant Contracts Tax (RCT)?
-
Relevant Contracts Tax (RCT) is Ireland’s equivalent of the UK’s Construction Industry Scheme (CIS). It applies to payments made by principal contractors to subcontractors in construction, forestry, and meat processing. Contractors must deduct RCT and remit it to Revenue.
- What is a Relevant Legal Entity?
-
A Relevant Legal Entity in Ireland refers to a corporate body that owns or controls a company. It would qualify as a Person with Significant Control (PSC) if it were an individual. Irish companies must report PSCs to the Companies Registration Office (CRO).
- What are retained earnings?
-
Retained earnings are accumulated profits that have not been distributed as dividends. They represent the financial strength of a business and are recorded in the company’s equity section on the balance sheet.
- What is Revenue?
-
Revenue is Ireland’s tax, payments, and customs authority. It oversees tax collection, including income tax, corporation tax, and VAT, and provides financial support through various reliefs and exemptions. Businesses and individuals submit tax returns to Revenue, ensuring compliance with Irish tax laws.
- What is Revenue’s digital tax system?
-
ROS, or Revenue Online Service, is an online platform provided by Ireland's Revenue Commissioners. It allows businesses, self-employed individuals, and tax practitioners to manage their tax affairs online. Through ROS, users can file tax returns, make payments, and access various tax-related services conveniently.
- What is a savings account?
-
A savings account is a type of bank account designed to help you store and grow your money over time. It typically offers interest on the money you deposit, meaning your balance increases as the bank pays you for keeping your funds with them. These accounts are great for setting aside money for future expenses, emergencies, or specific financial goals.
- What is share capital?
-
Share capital refers to the total value of shares issued by a company. In Ireland, share capital is recorded on the balance sheet at its nominal value.
- What is a shareholder?
-
A shareholder owns shares in a company and has a financial stake in its success. Shareholders may receive dividends and have voting rights in company decisions.
- What is a small company?
-
In Ireland, a small company, as defined by the Companies Registration Office (CRO), must meet two out of three criteria for the current and previous financial year: • Balance sheet total not exceeding €7.5 million. • Turnover not exceeding €15 million. • Number of employees not exceeding 50. Small companies may qualify for certain exemptions, such as audit exemptions and abridged financial statements, reducing their reporting requirements.
- What is a sole trader?
-
A sole trader is a self-employed individual who owns and operates a business. Sole traders in Ireland must register with Revenue and file annual tax returns.
- What is a stakeholder?
-
A stakeholder is anyone affected by a business’s operations, including employees, customers, shareholders, and the local community.
- What is a statement of financial position?
-
A statement of financial position, also known as a balance sheet, provides a snapshot of a company’s financial health, listing assets, liabilities, and equity.
- What is stock?
-
Stock, or inventory, refers to goods held for resale. Businesses conduct annual stock valuations to ensure accurate financial reporting.
- What is a Tax Reference Number (TRN)?
-
A Tax Reference Number (TRN) is a unique identifier issued by Ireland's Revenue Commissioners when a business, trust, partnership, or company registers for tax. It is used for tax filings, payments, and official correspondence with Revenue. For sole traders, their TRN is the same as their Personal Public Service Number (PPSN), but it only becomes a TRN once they register with Revenue.
- What are taxable profits?
-
Taxable profits are accounting profits adjusted for tax purposes. In Ireland, adjustments include replacing depreciation with capital allowances and removing non-deductible expenses.
- What is a trial balance?
-
A trial balance is an accounting report listing closing balances of all accounts. It ensures that debits and credits are correctly recorded.
- What is turnover?
-
Turnover refers to total sales revenue. It is used to classify businesses and determine VAT registration requirements.
- What is unlimited liability?
-
Unlimited liability means business owners are personally responsible for debts. Sole traders and general partners in Ireland have unlimited liability.
- What is Value Added Tax (VAT)?
-
VAT is a tax on goods and services. VAT-registered businesses in Ireland charge VAT on sales and reclaim VAT on purchases. VAT returns must be submitted to Revenue.
- What is the VAT threshold?
-
The VAT registration threshold depends on the type of business: • €85,000 for businesses primarily selling goods. • €42,500 for businesses providing services. If your turnover exceeds these limits in any continuous 12-month period, you must register for VAT with Revenue Commissioners. Some businesses may choose to register voluntarily even if they are below the threshold.
- What is working capital?
-
Working capital is calculated as assets minus liabilities. It indicates a business’s financial health and ability to manage short-term obligations.
- What is writing down allowance (WDA)?
-
Writing down allowances provide tax relief on qualifying assets. As a tax deduction, businesses claim capital allowances instead of depreciation.
- What is Xero?
-
Xero is a cloud-based bookkeeping software used by Irish businesses. It offers automation features such as bank feeds, invoice tracking, and financial reporting.