If you're an independent contractor working in Ireland, you might be surprised by the range of business expenses you can claim – And knowing what you can and can’t claim under your Personal Limited Company or Umbrella Company arrangement can make a real difference to your take-home pay.
In this Monthly Tax Tip, we break down what qualifies as allowable business equipment, what doesn’t, and how to ensure your claims meet Revenue’s guidelines.
What Business Equipment Can Contractors Claim Tax Relief On?
Contractors may claim tax relief of up to 52% on business assets that are wholly and exclusively required to carry out their contract. Examples of allowable equipment include:
- Laptops
- Mobile phones
- Tablets
- Printers
- Scanners
- Other essential office items
These assets must be essential to the performance of your contract and purchased in the name of your Limited Company or Umbrella Company.
What Do You Need to Claim Business Equipment?
To claim tax relief on business equipment as a contractor, you’ll need the following:
✅ A Valid Receipt
The purchase receipt must clearly show the item was bought under your company’s name (either your Limited Company or Umbrella Company).
✅ A Completed Pre-Approval Form
This form explains why the equipment is necessary for your current contract and ensures compliance with Revenue expectations. Your dedicated account manager in Icon Accounting can support you with this process.
What Equipment Is Not Allowable?
Not every item qualifies. Examples of non-allowable equipment or expenses include:
- Personal-use items (e.g. phones, iPads, laptops primarily used outside of work)
- Equipment purchased in your personal name rather than through your company
- Repairs or servicing of personal devices
- Purchasing multiple similar items (e.g. two laptops) under an Umbrella Company setup may not be permitted
The rule of thumb: if it’s not wholly and exclusively for business use, it’s unlikely to be allowable.
Other Relevant Expenses to Business Equipment
You can claim a proportion of your mobile phone and internet bills if these services are needed for your contract duties too. However, if they’re also used for personal reasons, you must apportion the expense accordingly.
What’s the Recommended Approach?
- Typically, a 50% disallowance applies (meaning you can claim 50% of the cost)
- If you can clearly demonstrate greater business use, you may be eligible to claim a higher proportion
- Ensure you maintain accurate records to support your claim (e.g. usage logs or work-related communications)
Final Thoughts: Keep It Compliant and Claim What You’re Entitled To
Independent contractors in Ireland can legitimately claim business equipment and expenses, provided they follow Revenue guidelines. Making the most of these tax reliefs can significantly improve your net income – but only if you stay compliant.
If you’re unsure whether an expense qualifies, or you need help completing the pre-approval form, contact your advisor at Icon Accounting today – we’re here to help.
And if you ever need assistance on understanding the business expenses you can claim as an independent contractor, feel free to contact the Icon Accounting team for further guidance on 01-8077106 or info@iconaccounting.ie.
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Icon Accounting, Columba House, Airside,
Swords, Co. Dublin, Ireland, K67 R2Y9