Revenue taxes your profit — income minus allowable expenses. Every legitimate expense you claim reduces the amount of income tax, USC, and PRSI you pay. A €1,000 expense claim saves a higher-rate taxpayer roughly €500 in tax.
Revenue allows deductions for expenses that are "wholly and exclusively" incurred for business purposes. For side hustlers, this typically includes:
Revenue requires you to keep records for six years. This means receipts, invoices, bank statements, and a record of income and expenses. A simple spreadsheet works fine for most side hustlers. Cloud accounting tools like Surf Accounts, Xero, or even a Notion tracker keep things organised.
Not in year one. Most equipment is claimed through capital allowances at 12.5% per year over 8 years. However, if the laptop is exclusively for business use, you can sometimes accelerate this — check with an accountant for your specific situation.
A common approach is to calculate the number of rooms used for business as a proportion of total rooms, then apply that proportion to eligible home costs. There's no single Revenue formula — use a reasonable and documentable method.
Digital copies are acceptable. Email receipts, PDFs, or photos of paper receipts all count. The key is having something that proves the expense was real and business-related.
This guide is for general information. Always verify at revenue.ie or with a qualified accountant.
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