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TIPS FOR BUSINESS OWNERS – HOW TO MINIMISE YOUR TAX BILL IN IRELAND

Navigating the intricate landscape of Irish taxation can be daunting for both budding and established businesses.

This is where the expertise of Amergin Group, one of the premier accountancy firms in Ireland, comes to the forefront. Armed with profound knowledge of the Irish market dynamics and bespoke solutions for startups and SMEs, our commitment is to steer you confidently throughout your entrepreneurial journey.

Dive into our in-depth guide to help you retain more of your well-deserved profits:

1. DECIPHERING BUSINESS EXPENSES

Distinguishing between allowable and non-allowable expenses is pivotal. Genuine business expenses directly pertain to your company operations.

Examples include salaries, accountant consultation fees, insurance premiums, and even the charges associated with company incorporation. A rule of thumb: If the expense would only arise in the presence of your business, it’s typically a valid business expense.

2. CLAIMING PRE-INCORPORATION EXPENDITURES

Early birds often bear costs even before their business is formally incorporated. Expenditures on business model creation or company registration charges fall under this category. These can be claimed, but it’s imperative to inaugurate a business bank account promptly post-incorporation to clearly bifurcate business and personal funds.

3. TACKLING COMPANY LOANS

It’s common for directors to fund the company during its nascent stages. When the enterprise begins to profit, these loans can be repatriated tax-free. Precision in record-keeping is non-negotiable here.

4. THE “NON-CLAIMABLE” CATEGORY

All that glitters isn’t gold. Even though expenses on branded company apparel might be deductible, general attire isn’t. Further, restrictions exist on claiming certain capital expenditures.

5. NAVIGATING MOTOR EXPENSES

For businesses constantly on the move, understanding the tax intricacies of vehicular expenses is vital. For instance, an antique company car can be your ticket to sidestep the Benefit-in-Kind (BIK) tax trap.

6. PAY STRUCTURES FOR TOP BRASS

Ireland offers a platter of remuneration alternatives to company directors. Striking the right equilibrium between salaries, dividends, or even pension inclusions can significantly impact the resultant tax.

7. RENT – A DUAL-EDGED SWORD

The expenditure on office rent is unambiguously deductible. However, home-based entrepreneurs should tread cautiously. While a fraction of home rent might be claimable, overstepping can open Pandora’s box of additional tax burdens.

8. EARLY BIRD ADVANTAGES

Tax deductions can be availed on expenses undertaken up to three years prior to company incorporation. This covers costs associated with preliminary research or professional fees.

9. REMOTE WORK TAX PERKS

The digital age and the surge in remote operations have brought the tax dimension of work-from-home to the limelight. In Ireland, tax allowances favouring remote employees or directors encompass a range of costs, from internet connectivity to home utilities.

10. UNRAVELING SUBSISTENCE & LOANS

Adopting fixed subsistence rates or real-time receipts ensures reimbursements aren’t miscategorised as taxable income. Conversely, bulk payments devoid of corresponding receipts can ensnare you in tax complications.

While this guide sketches a broad outline, it’s crucial to remember that every business is unique. 

For tailored guidance that aligns with your business model and goals, we invite you to reach out to Amergin Group’s dedicated client services wing. 

In the world of taxation, forearmed is forewarned. Let’s navigate this journey together.

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Dublin 2  D02 H364