Why Expenses Matter
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.
What You Can Claim
Revenue allows deductions for expenses that are "wholly and exclusively" incurred for business purposes. For side hustlers, this typically includes:
- Equipment and tools: Laptops, cameras, tools, machines — claimed as capital allowances (12.5% per year over 8 years for most assets)
- Software and subscriptions: Adobe, Canva Pro, Zoom, accounting software — 100% deductible in the year of purchase
- Phone costs: The business proportion of your monthly bill (keep a log)
- Home office: A proportion of electricity, heating, broadband based on the ratio of business hours to total use
- Professional fees: Accountant fees, legal advice related to your business
- Platform fees: Etsy listing fees, Upwork service fees, PayPal transaction fees
- Marketing: Paid ads, business cards, website hosting
- Transport: Travel to clients or for business purposes (mileage at civil service rates, or actual cost)
- Training and books: Courses and materials directly relevant to your trade
What You Cannot Claim
- Personal living costs — food, personal clothing, personal travel
- Costs that have a personal and business element where you can't clearly separate them
- Fines or penalties
- Entertainment costs (these have very restricted deductibility)
Keeping Records
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.
Can I claim the full cost of a new laptop?
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.
What proportion of my home can I claim?
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.
Do I need original receipts?
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.
General information, not personal tax, financial or legal advice. Rules change — check revenue.ie or ask a qualified accountant.