Allowable expenses as a Limited Company in Ireland
A personal limited company is a company owned by you. It is a separate legal entity giving you legal protection against any personal liability while contracting. Unlike an umbrella company, you fully own the company. A personal limited company is most suited to long term contractors looking to establish a company in their own name. It can also benefit professionals with multiple incomes from related business interests outside of their normal daily rate contracting role. A personal limited company is responsible for paying its own taxes and ensuring it fulfils all of its duties.
One of the most frequent questions we are asked by contractors who want to setup Limited companies is about expenses, particularly which expenses can you claim. The things you can claim for are determined by Revenue guidelines so all companies should follow the same process. The golden rule when it comes to expenses is that you can only offset those expenses which have been incurred wholly, exclusively and necessarily in the performance of your duties. Below is an overview of the costs and expenses you could be eligible to claim when you are a Director of your own Limited company.
- Business costs v (Training costs, electronic equipment, parking) – Tax relief given at source
- Mileage (Cars, motorcycles, bicycles and vans) – Tax relief given at source
Business Expenses (Entertaining, stationery, travel, subsistence, accommodation etc) – Expenses must be wholly and exclusively incurred during the course of business.
- Training costs – The cost of any training courses or textbooks that you need may be claimed and reimbursed, provided they are related to your role. If this is a requirement for your current assignment, then it is highly likely the request will be accepted. Any non-work related qualifications aren’t eligible for reimbursement.
- Electronic equipment – The cost of electrical equipment such as an iPad or laptop and software can be claimed and reimbursed, provided they are essential for your assignment. You will need to detail how each purchase supports your role.
Accounting Pro is Ireland’s premier contractor accounting service. We are here to help, the busy contractor and company, with all your accounting and payroll needs. We are both an umbrella company and umbrella corporation and we can create your limited company. We are experts in contractor pensions, contractor health insurance, illness and sick benefit for the self employed and contractor expenses. To learn more about what we do please review https://www.accounting-pro.ie/ and contact us by email: firstname.lastname@example.org or phone us 01 592 1199. For the UK see Accounting-Pro UK. “Allowable expenses as a Limited Company in Ireland” is an article written by Accounting-Pro Ireland for the benefit of everyone. Feel free to share it but please give attribution on a CC BY-SA license.