TOP 12 ALLOWABLE EXPENSES FOR SMALL BUSINESSES
- CAR & VAN EXPENSES
Most businesses use a car and/or van. The cost of operating the vehicle is deductible as a business expense. However, the car/van should be in the business owners name, and any personal use will need to be disregarded when preparing the income tax return.
- EMPLOYEE SALARIES
The salary you pay your staff is a cost to the business. The Employers PRSI paid is also a business expense.
- RENT ON PREMISES
The cost of renting space – office, storage, factory, storefront etc. is a deductible expense in your business
- HOME OFFICE
For any businesses that don’t rent space, but run their business from an office at home, a percentage of the light, heat and rent can be used as a business expense. Also, the cost of any repairs or upgrading of the home office is deductible as an expense.
- PROFESSIONAL FEES
If your business needs legal advice at any stage during the year, this is fully deductible as a business expense. The cost of your accountant preparing your year-end accounts, tax returns, etc is also a business expense
- CONTRACT LABOUR
Sometimes it’s cheaper to take on sub-contractors for short periods of time, than employ staff. The fees charged by the sub-contractors are a business expense to be used to reduce taxes.
Bills such as heat, electricity, water are business expenses. Other utility bills include your phone and broadband.
All repair work needed on your business premises are fully deductible expenses on your business
All business insurances are deductible expenses
Any advertising costs, including social media adverts and the cost of using a marketing consultant, are all expenses on your business
- LOAN INTEREST
Any interest paid on loans taken out for business purposes are treated as business expenses
- COMMISSIONS & FEES PAID
Bank fees and commissions paid are all deductible business expenses.
There are many possible business expenses and these are just the 12 most common. Before finalising your accounts each year, make sure you have included all the expenses you have had during the year to make sure you are not paying too much tax!