Article

Irish Company Expenses: What’s Allowable and What’s Not

A clear, practical guide for directors on what company expenses you can and cannot claim in Ireland.

Last updated 15 Apr 2026 | First published 15 Apr 2026

Running a limited company means you’ll have lots of costs and many of them can reduce your corporation tax bill. But only if they meet Revenue’s rules.

This guide for directors explains, in plain English, what you can and cannot claim as a business expense in Ireland in 2026.

What expenses can I claim?

The golden rule is that an expense is allowable only if it is “wholly and exclusively for the purposes of the trade.” In other words, it must be for the business, not for personal use and not partly personal unless you split the cost fairly. If an expense fails this test, Revenue will not allow it.

Why good records matter

Irish companies must keep records for six years. This includes receipts, invoices, mileage logs, and digital copies. Good bookkeeping protects you in a Revenue audit and makes it easier to claim everything you’re entitled to.

Allowable expenses

Here are the most common expenses Irish companies can claim and explained simply:

1. Stock, materials and goods for resale

Anything you buy to make or sell your product is fully deductible.

2. Office costs

You can claim for:

Rent, rates, light, heat, electricity
Cleaning and repairs
Office equipment (capital allowances may apply)
Business broadband and phone lines
Working from home (you can claim a reasonable portion of home costs if you work from home, based on actual business use)

3. Wages, salaries and employer costs

The following are fully allowable:

Staff wages
Director salaries
Employer PRSI
Employer pension contributions
Payroll software and processing fees

4. Training and professional development

These costs are allowable if the training updates your existing skills or is relevant to your current business. Training for a new career or new trade is not allowable.

5. Staff gifts and staff events

The Small Benefit Exemption Scheme allows up to €1,500 per employee five times per year. It must be non-cash.

Staff entertainment is allowed as long as the staff events are reasonable (e.g., Christmas parties are allowable.)

6. Insurance

Most business insurance is deductible such as Public Liability, Employers’ Liability, Key Person Insurance, Professional Indemnity and Office and equipment insurance.

7. Professional subscriptions

Professional subscriptions are allowable if the membership is required for your job or relevant to your trade.

8. Legal and professional fees

Allowable fees include accountancy fees, tax compliance fees and legal advice relating to day to day business.

Not allowable include legal fees for buying property, fees for restructuring shares and personal tax return fees for directors.

9. Bank charges and interest

Allowable include bank fees, merchant service charges, business loan interest and overdraft fees.

10. Admin and office supplies

This includes postage, stationery, software subscriptions, printing and office supplies.

11. Advertising and marketing costs

Advertising and marketing costs are all allowable if they promote the business.

These include:

Website costs
Branding
Online ads
Promotional materials

12. Travel and subsistence

Travel and subsistence allowed include:

Mileage (Revenue civil service rates)
Public transport
Taxis
Flights
Hotels and meals while travelling for business

Note that commuting from home to your normal workplace are not allowable while travel with a personal element must be split.

13. Pre‑trading expenses

You can claim expenses incurred up to three years before trading if they would have been allowable once the business started.

Expenses you cannot claim (Disallowable)

1. Client entertainment

Client entertainment is never deductible.

2. Capital expenditure

Items like laptops, machinery, and vehicles are not deductible as expenses but you can claim capital allowances.

3. Dividends

Dividends are a distribution of profit but not an expense.

4. Fines and penalties

Parking fines, Revenue penalties, and similar costs are not allowable.

5. Charitable donations

These are not deductible against trading income. However, donations to approved charities may qualify for tax relief under the Charitable Donation Scheme.

Make sure you don’t miss anything

Missing allowable expenses can mean your company pays more Corporation Tax than necessary, reducing your overall profitability. Even small, overlooked costs can add up over time, so it’s important to review everything carefully. Keeping accurate records and regularly checking your expenses helps ensure you claim everything you’re entitled to while staying compliant with Revenue rules.

Make sure you:

Keep receipts (digital is fine)
Review expenses monthly
Reimburse directors properly
Keep mileage logs (The TaxAssist App has a milage tracker!)
Ask your accountant to review grey‑area items

Looking for an accountant for your limited company?

Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote

1800 98 76 09

Or contact us

Last updated 15 Apr 2026 | First published 15 Apr 2026

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Gearoid Condon, FCA

Gearoid is a highly experienced Chartered Accountant with 25 years of expertise in business consultancy, specialising in supporting SME business owners. Gearoid has worked with start-ups and with established businesses to improve the way they run, with particular focus on growth, efficiency, and structuring operations. Through his experience Gearoid has a strong understanding of the tax system and business regulations in Ireland.

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