Deductible Expenses

Gumbyman

Hi there,

I have just set up a Ltd company and am going to try to do my own books. Just wondering is there a full list anywhere of what is allowable by revenue as a business expense and how they must be filed? Eg when is something an expense and when is it a capital purchase that needs to be depreciated. Laptop seems a bit grey to me. Mostly I'm after the list though (eg christmas party, client entertainment, petrol, stationary) and any other tips to pay as little tax as is (legally) possible.

Thanks!
Gumby.

JoeTurner

Hi Gumby,

There are some very good guides to what's allowable on the Revenue Commissioners website at www.revenue.ie

http://www.revenue.ie/publications/leaflets/infolef7.htm

There should be enough to get you started there!

Joe

rinnin

Sorry if this is the wrong forum but I havent a clue about this sort of stuff.

I recently qualified as a physio from a UK university and had to pay the regulating body here €500 to have my qualificaions validated for work in Ireland.
If I eventually do get a job (fat chance at the minute) is it possible for me to claim this back against my PRSI as an expense, along with my public liabilty insurance and membership fee for the same regulating body? (We're talkign close to a grand in total here folks! )
Also is it different if I'm working for a private employer instead of the HSE and do I need to hire an accountant to sign this off?

In the past have been able to claim tax back from summer jobs as I returned to college and wasnt earning. Always got a cheque back from the revenue a few months later. Hoping it might be the same for this
Advice appreciated.

elgransenor

Generally, whats deductible is those expenses 'wholly and exclusively' incurred in the course of your business.
Revenue will also accept a reasonable apportionment re expenses which are incurred partly for business and partly for domestic eg house phone if you can show that you make calls from home re your business

rinnin

elgransenor wrote: »

Generally, whats deductible is those expenses 'wholly and exclusively' incurred in the course of your business.
Revenue will also accept a reasonable apportionment re expenses which are incurred partly for business and partly for domestic eg house phone if you can show that you make calls from home re your business

Hmm. Thanks elgransenor, I think. By saying "those expenses wholly and exclusively' incurred in the course of your business" does that mean it would only applies to those self-employed as someone working in a hospital for the HSE for example wouldnt really have a "business"?
Or maybe I'm looking at it backasswards.
Thanks

elgransenor

Yes,generally have to be self employed;if you are an employee the expenses you can claim are fairly clearly defined and benefit in kind will have to be accounted for.
You could be an independent contractor which puts you back in the self employed arena.
Having said that there are for example professional courses,educational etc which may be tax deductible and allow a reclaim to arise.
So I suppose there is a fair bit of grey in the whole area but Revenue are no fools and whatever they decide goes.

elgransenor

rinnin wrote: »

Sorry if this is the wrong forum but I havent a clue about this sort of stuff.

I recently qualified as a physio from a UK university and had to pay the regulating body here €500 to have my qualificaions validated for work in Ireland.
If I eventually do get a job (fat chance at the minute) is it possible for me to claim this back against my PRSI as an expense, along with my public liabilty insurance and membership fee for the same regulating body? (We're talkign close to a grand in total here folks! )
Also is it different if I'm working for a private employer instead of the HSE and do I need to hire an accountant to sign this off?

In the past have been able to claim tax back from summer jobs as I returned to college and wasnt earning. Always got a cheque back from the revenue a few months later. Hoping it might be the same for this
Advice appreciated.

Rinnin, I think you would be in a very strong position to claim back the registration fee for the professional body.
Solicitors and Accountants do so in relation to their professional bodies as it is an expense incurred wholly and exclusively incurred in furtherance of your business/trade.

Mr Clonfadda

Hi Rinnin

There should be no reason why either your membership or insurance would not be allowable. Tax is done on the basis of self assesment, therefore accountants do not have to "sign off" on a tax return. you can pick up form from tax office or online.

rinnin

Well thats a bit of good news for a change. I wonder are textbooks deductible also then?
(Now I just have to go and look up what "benefit in kind" and "independent contractor" are all about).
Thanks again Nigel & elgransenor.
R