Last-Minute Tax Moves for 2025 Year-End: Small Business Tax Planning Checklist

Published: October 2025
Author: Amergin Consulting Ltd.
Target Audience: SME Owners, Finance Managers, Accountants

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Executive Summary

The final weeks of the tax year are when smart Irish businesses make strategic moves to minimise tax liabilities and strengthen cash flow.
With Budget 2026 now announced and several reforms taking effect on 1 January 2026 — including Auto-Enrolment setup, PRSI increases, and changes to R&D tax credits — December 2025 is your last chance to tidy accounts, accelerate deductions, and position your SME for a clean start in 2026.

This quick-fire checklist covers the most practical steps: from timing purchases and pension contributions to claiming capital allowances and making director’s salary adjustments before year-end.

Whether you’re a company director, a sole trader, or managing payroll in-house, these simple, compliant actions can reduce your 2025 tax bill and give your finances a year-end boost.

1. Check Your 2025 Profit Position — and Act Before 31 December

Start by reviewing your management accounts now, not in February.
If profits are higher than expected, consider legitimate ways to bring forward deductible expenses before the year closes.

Examples include:

• Paying supplier invoices before 31 December (rather than January).

• Ordering essential equipment now if delivery and invoicing occur in 2025.

• Scheduling professional services such as audits or legal advice before year-end so that the expense is recognised in 2025 accounts.

Even simple timing differences can shift tax-deductible costs into this period and reduce your corporation tax or income tax liability due in 2026.

If your profits are lower than forecast, the opposite may apply: defer discretionary expenses to next year to smooth results and preserve losses for 2026.

2. Accelerate Capital Allowances and Green Upgrades

Capital allowances are one of the most valuable reliefs for SMEs — and 2025 is an especially good year to act.

Under current rules, qualifying equipment and building improvements (machinery, IT systems, energy-efficient upgrades, etc.) can attract Accelerated Capital Allowances (ACA) of 100% in year one.

If you’ve been postponing investment, completing it before 31 December means you can claim the deduction in your 2025 tax return, rather than waiting another year.

Eligible examples:

• Electric vehicles or hybrid vans for business use.

• Energy-efficient lighting or heating systems.

• Solar panels and renewable technology.

• Office refits and safety upgrades.

Tip: If the invoice and payment are processed before year-end, even if installation finishes in early January, Revenue generally allows the claim in the 2025 accounting period.

3. Top Up Directors’ and Employees’ Pensions

Pension contributions remain one of the most efficient tax planning tools available.

For company directors, employer pension contributions made before 31 December 2025 are fully deductible against corporation tax, provided they’re actually paid before year-end.

If you’re a sole trader or partnership, personal pension contributions can also reduce your 2025 income tax — as long as payment is made before 31 October 2026 (the filing deadline). However, making the contribution in December improves cash-flow forecasting and locks in the deduction.

Consider:

• Maximising employer contributions for directors nearing retirement limits.

• Setting up pensions for key employees as part of retention strategy before Auto-Enrolment becomes mandatory on 1 January 2026.

• Reviewing group schemes for compliance with the new My Future Fund framework (starting January 2026).

4. Review Payroll — Bonuses, Benefits, and Timing

Year-end is a strategic time to review remuneration structures:

• Directors’ bonuses: Paying before 31 December means the cost is deductible in the 2025 company accounts (even if taxed on the employee in early 2026).

• Benefit-in-Kind (BIK): Ensure all BIK items such as company cars, fuel cards, or health insurance are accurately reported in December payroll submissions. Errors now will carry forward into 2026.

• Payroll cut-off: Verify that all PAYE, PRSI, and USC submissions are filed correctly by the 14th/23rd of each month under Real-Time Reporting. This is especially important ahead of the PRSI rate increase due on 1 October 2026.

SMEs should also prepare for new Auto-Enrolment pension deductions beginning 1 January 2026 if your payroll software isn’t yet updated, plan an integration test before the December pay run.

5. Make the Most of Small Benefits and Vouchers

Don’t forget Revenue’s Small Benefit Exemption up to €1,000 per employee, tax-free, in up to two non-cash vouchers per year.

If you haven’t used it, December is your last chance.
It’s a simple morale booster that’s also fully deductible for the business.

Example: issuing €500 and €500 One4All or digital vouchers before Christmas lets staff benefit without any PAYE, PRSI, or USC.

6. Claim All Available Reliefs Before the Cut-Off

There are still reliefs many SMEs forget to claim. Before closing your books:

• R&D Tax Credit (30%) If your company undertook qualifying innovation or process improvements during 2025, prepare documentation now. You can claim 30% of qualifying spend, even if the project isn’t finished yet.

• Employment Investment Incentive (EII)  Investing in qualifying Irish startups or SMEs can generate income tax relief of up to 40%. Ensure subscriptions or payments are completed before 31 December to qualify for 2025.

• Digital and Training Vouchers LEO and Enterprise Ireland grants often reopen early each year; applying in December can secure January approval.

These schemes not only reduce taxes but can strengthen your company’s innovation and growth capacity heading into 2026.

7. Don’t Miss Director and Company Compliance Deadlines

Many tax planning moves fail because of missed filings or overdue returns.
Before the Christmas break, double-check:

• All 2025 VAT returns (monthly or bi-monthly) are submitted by the 19th of January 2026 at the latest.

• Corporation Tax preliminary payments (for December year-end companies) were made by 23 November 2025.

• CRO Annual Returns (B1) are up to date to avoid late filing penalties or audit risk.

If any returns or tax payments are outstanding, clear them now Revenue and CRO systems automatically apply interest and penalties once due dates pass.

8. Prepare for 2026: Budget and Cashflow Ahead

Once you’ve handled the 2025 close, take an hour to look ahead.
The first quarter of 2026 will bring:

• Auto-Enrolment enrolment notices from Revenue/NAERSA.

• Higher PRSI costs (another +0.1% in October 2026).

• New property tax rules and energy-efficiency incentives.

Building these changes into your 2026 cash-flow plan will prevent unpleasant surprises next autumn.

Amergin’s Quick Year-End Tax Checklist

Conclusion: Small Moves, Big Savings

Tax efficiency doesn’t always require complex schemes  just timing, discipline, and awareness.
The best tax planning happens before 31 December, not after.

By acting now paying expenses, funding pensions, rewarding staff, and confirming your filings, you can trim your 2025 tax bill and enter 2026 in strong financial shape.

About Amergin Consulting Ltd.

Amergin Consulting Ltd. is a Dublin-based chartered accountancy and business advisory firm serving Ireland’s SMEs and growth companies across construction, technology, professional services, and renewable energy.
We specialise in Accounting, Payroll, Taxation, and CFO Services that help businesses build stronger foundations for profit and compliance.


Need help running a year-end tax review or planning your 2026 payroll changes?
Amergin Consulting’s finance and tax team can help you identify deductions, forecast cash flow, and ensure full compliance before the year closes.
Book your 30-minute consultation:  https://calendly.com/amergin-group_free/30min

Disclaimer

This article is for general informational purposes only and does not constitute financial or tax advice. While every effort has been made to ensure accuracy, Budget 2026 legislation may change upon enactment of the Finance Act 2025.
Builders and developers should seek professional advice tailored to their specific circumstances before acting on any points discussed.

Sources

• Donohoe, P. – Budget 2026 Statement (Dept. of Finance)

• ThinkBusiness.ie – Budget 2026: Key Points for Business Owner

• Irish Times – R&D tax credit in Budget to rise from 30% to 35%

• Reuters – Expansionary Irish 2026 budget targets investment

• Amergin Consulting – Auto-Enrolment Guide for SME

• Amergin Consulting – Outsourced CFO Blog (Quick Facts section)