Running a business means juggling a lot of responsibilities and tax planning often slips down the list. But with a bit of forward planning, you can make savings, it all adds up! Here are some of the most commonly overlooked tax strategies every business owner should revisit before year end.
Build a Strong Pension Pot
Employer pension contributions remain one of the most tax efficient ways to extract value from your company. They’re deductible for the business and not taxable on the employee, as long as Revenue limits are respected.
Many business owners discover their pension pot is underfunded after years of neglect. If that sounds familiar, we can connect you with a pension advisor who can help rebuild it effectively.
Put the Family to Work
If your spouse or adult children genuinely help in the business, you can pay them a fair commercial wage for the work they do. This can spread income across lower tax bands, build PRSI contribution records, and help with future pension entitlements.
Be sure to have proper contracts in place and be aware of specific PRSI rules especially when employing children, or when the business is run from the home. Our tax team can guide you through this correctly.
Claim What You’re Due for Business Travel
If you use your personal vehicle for business purposes, you can claim mileage at Civil Service rates from your company (no milage claims for sole traders). Maintain clear records including dates, destinations, kilometres travelled and the business purpose of each trip. Good documentation ensures you’re fully prepared if Revenue requests supporting evidence.
Track Expenses and Simplify Reporting
Encourage staff to use a company debit or credit card for business expenses rather than paying personally and claiming reimbursement. This helps reduce administrative work, limits the need for Enhanced Reporting Requirements (ERR) on repayments, and ensures accurate record-keeping.
Where staff do incur out-of-pocket expenses, make sure receipts and clear records are kept to support full tax deductibility.
Vouchers and Staff Perks — 2025 Update
Under the Small Benefit Exemption, employers can now provide up to five non-cash benefits per employee per year, up to a combined total value of €1,500. These benefits must not be cash or convertible to cash, and they cannot form part of a salary-sacrifice scheme.
If any single benefit exceeds €1,500, the entire amount becomes taxable. Each benefit must also be reported under ERR, so accurate tracking is essential.
Staff Meals
Meals provided on the business premises can qualify as a tax-free benefit when made available to all employees, even if there is no formal canteen. This makes staff meals a cost-effective and tax-efficient perk.
Site-Based Employees and the €5 Daily Eating Allowance
Employees working on construction or external sites may receive a tax-free “eating on site” allowance of up to €5 per day. To qualify, there must be no canteen or food preparation facilities available, the employee must work at least 1.5 hours before and after lunch, and no other subsistence allowance can be paid for that day.
This generally applies to employees working away from their normal place of work, typically 32 km or more from the base. Any amount above €5 is taxed through payroll.
Working From Home
If you use part of your home as an office, you may claim a portion of household expenses, such as electricity and heating, as a business deduction. The allowable portion depends on the size and usage of the workspace.
Staff Medicals
You may pay for one medical check-up per year for each employee. Where this is available to all employees, it does not create a taxable benefit and no BIK applies.
Need Tailored Advice?
This guide outlines common year-end tax considerations for business owners. It’s general in nature and should not be relied on as full advice. Every business is different, and tax rules evolve regularly.
For personalised support, speak with one of our qualified tax advisors who can guide you based on your specific situation.
-Lisa
Lisa Lokasto 
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