Irish Company Expenses: What’s Allowable and What’s Not
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
Or contact us
Last updated: 16th April 2026