Claiming a deduction for expenses (2024)

When calculating the profit for your business, you may be able to claim a deduction for expenses incurred. Expenses are claimed through the Revenue Online Service (ROS) on a Form 11 or Form CT1.

What expenses can be claimed?

The expenses that you can claim for are those that are directly related to the running of your business such as:

• the purchase of goods for resale
• employees' pay
• rent and bills for your business premises
• running costs for vehicles or machines that you use in your business
• lease payments for vehicles or machines that you use in your business
• accountancy fees
• interest payments for money you borrowed to finance your business.

You may also claim for expenses you had before your business started trading such as the cost of preparing business plans. See the Relief for pre-trading expenses manual for more information.

If you are registered for Value Added Tax (VAT), the amount that you claim for expenses should not include the VAT amount.

What expenses can not be claimed?

You can not claim expenses for any item that is not fully related to the running of your business such as:

• clothing (except protective clothing)
• your own pay
• business entertainment expenses
• your own food or travel expenses (except those described in the Food and Accommodation Expenses and Travel Expenses manuals).

You cannot claim a deduction for capital expenditure when calculating your profit. Capital expenditure is money you spend on buying or maintaining land, property or equipment for your business. You may be able to claim capital allowances on some of this expenditure.

Expenses that are for both business and private use

If you spend money on something that is for both business and private use, you can claim a deduction for part of the expense. This would include items such as phone bills, motor expenses and rent. You must work out how much of the expenditure was for business purposes and claim a deduction for that amount only.