What Business Expenses Can I Claim as a Contractor?
As a Contractor you should familiarise yourself with your right to claim costs – it could save you money and help you better plan your expenses, while also reducing your tax liability.
Contractors are permitted to claim business expenses for a wide array of costs from travel expenses to larger business costs (i.e. company equipment).
Icon Accounting Operations Director, Claire Fagan, explores what type of business expenses you can claim as a Contractor, including transport and relocation expenses and most importantly, what information to record to support claims.
Mobile & Internet
Tax relief can be claimed on mobile phone and internet costs that are necessary for your contract. It’s best to provide a valid and up-to-date mobile phone or internet bill showing your name, address date and payment to verify the expense.
Where mobile or internet are used for both personal and business-related activity, we recommend that you disallow a personal element.
Postage & Stationary
Don’t forget your traditional means of communication! Tax relief may be claimed for postage and stationary and other general office costs relating to your contract. You will need to keep valid receipt and any courier paperwork as proof of purchase.
Monthly tax-saver tickets can be purchased if you require public transport to travel to the contracted place of work. Please note that daily, weekly, monthly, bus/train tickets which are purchased directly from the ticket desk are not eligible to be claimed for. Icon Accounting can help you acquiring your Tax-Saver ticket. Hang on to your Tax Saver receipts and paperwork as you may need them later.
Tax relief can be claimed for training courses which are required for your specific contract. This expense is typically processed over the duration of the contract. Receipts should be made out in name of the Umbrella /Ltd Company. It’s best to have a clear explanation that demonstrates the requirement of the training course relevant to your contract.
Please note that the training courses must have been undertaken during the time frame of the contract to qualify. All other non-contract related courses should be claimed through a personal tax return.
Tax relief may be claimed on business assets which are exclusively required for a contract. All receipts for business equipment should be valid and made out in the name of the Umbrella Company / Ltd Company. Repairs on assets or the purchase of iPads, phones, laptops, tablets or PCs for personal use are not eligible to be claimed.
Tax relief can be claimed on relocation expenses where you relocate for a contract position. This includes the initial travel costs and accommodation expenses for the first three months in the country.
If you have relocated within Ireland, vouched fuel receipts may be permitted as a business expenses for the initial trip. Don’t forget that relocation is defined as a minimum move of 100km and the relocation dates should coincide with the dates of your contract.
If you haven’t attained leased accommodation, there is a subsistence rate of €147 per night claimable for the first 10 nights of the contract. All receipts for rent should be provided subsequent to the first 10 nights after claiming subsistence.
Tax Relief may be claimed on a portion of utility costs, e.g. heating and electricity if you are required to carry out a substantial element of work from home.
Other Claimable Business Expenses:
Income Protection / Sick Pay Cover
Tax relief can be granted on approved Income Protection schemes. Income Protection can be deducted via the Limited Company or personally.
Pension payments including Executive Pension Plans may also be processed through the Umbrella Company /Ltd Company, where tax relief is granted at source.
Business Expenses FAQs
Can I claim personal expenses?
Unfortunately, as claimable expenses pertain specifically to professional circumstance, personal expenses are not eligible to be claimed.
How long do I need to keep my original receipts for?
All contractors should maintain original receipts for a minimum of six years, as Revenue may require such receipts later. Clients with Icon Accounting have the added benefit of a centralised administration platform, ‘i-Connect’ where receipts are uploaded and saved.
How can I find out more?
Icon Accounting specialise in assisting contractors – both first-time and experienced – with their business expenses, providing bespoke services, combined with smart technology and the support of personal account managers.