Top Tax Deductions that small businesses in Ireland miss

— meaning they could be legitimately reducing their tax bills but either don’t know about them or don’t claim them properly:

1. Pre-Trading Expenses

If you incur costs before your business officially starts trading (e.g., legal fees, branding, training, market research), you can usually claim those as deductible once the business begins. Many startups forget to include these in their first tax return.

2. Home Office & Remote Working Costs

When running a business from home, a portion of household costs — such as electricity, heating, broadband and even rent or mortgage interest — proportionate to business use can be claimed. This is one of the most frequently overlooked deductions.

3. Professional Subscriptions & Fees

Fees paid to professional bodies, trade associations or industry organisations are deductible if they’re relevant to your business. Many small firms miss these simply because they don’t realise membership costs count.

4. Small Benefit Exemption Scheme

Employers can give employees (including directors) non-cash benefits (such as vouchers) up to a certain annual limit tax-free. If not used, owners might miss out on this simple way to reduce payroll taxes.

5. Mobile, Broadband & Mixed Use Expenses

If you use your personal mobile or internet partly for business, you can claim a reasonable portion of these bills as a business expense — but only if you have a good business-use record.

6. Capital Allowances

Large purchases like equipment, machinery or business vehicles aren’t usually deductible in one go — but you can claim capital allowances over time. Missing or incorrectly claiming these can leave money on the table.

7. R&D Tax Credits

Many small businesses never claim R&D tax credits because they assume they don’t qualify (thinking only labs or tech firms do R&D). In Ireland, many types of innovative development — including process or software improvements — can be eligible. Those that do qualify can claim a significant percentage of qualifying R&D spend.

Note: The R&D credit rate in Ireland has been increasing and may offer even more value to eligible businesses.

8. Director Pension Contributions

Contributions to directors’ pensions are often overlooked but are deductible (and beneficial for retirement planning).

9. Bad Debts Deductions

If a customer fails to pay and you’ve taken reasonable steps to recover the debt, you can write it off for tax purposes. Many businesses don’t realise this is allowable.

10. Training & Development

Costs you incur for training courses or professional development for yourself or employees can usually be deducted. Many small enterprises overlook this because they think it’s a personal cost rather than a business expense.

Tips to Avoid Missing Deductions

• Keep accurate and detailed records — including receipts and business-use calculations.

• Review Revenue guidelines regularly — eligible deductions and reliefs can change with budgets and tax law updates.

• Talk to a tax adviser/accountant — they can spot deductible items you might overlook.