Q4 Tax Planning: 7 Things to Do Before 31 December

The end of the year always comes around quickly, and when you're busy contracting, tax planning is easy to put off. But the next few months are the best time to reduce your tax bill, stay ahead of Revenue deadlines and make sure you're not leaving money on the table before the end of 2026.

Whether you work through a Personal Limited Company, a PAYE Umbrella Company, or a Director Umbrella Company, this guide covers the key year-end tax planning moves for contractors in Ireland.

1. Make the most of your pension contributions

A pension is one of the most tax-efficient ways for contractors to save.

• Backdate relief to 2025: If you make a personal pension contribution before the Pay & File deadline (31 October, or the ROS extension date if you pay and file online), you can claim tax relief against your 2025 income.
• Relief at your marginal rate: For most contractors, that means relief at 40%. Personal contributions are limited to 15%–40% of your earnings depending on your age, on earnings up to €115,000.
• Limited Company contractors: Your company can pay into a pension on your behalf. Employer contributions are a deductible expense for the company, aren't treated as a benefit-in-kind for you, and aren't restricted by the age-related limits on personal contributions. 

if you do want any guidance on your pension, Icon Wealth Management is available to help. 

2. Don't miss a tax deadline

Missing a Revenue deadline means surcharges and interest you don't need to pay. Key dates for contractors:

• 31 October 2026 (or the ROS extension date): File your 2025 Form 11, pay any balance due for 2025, and pay your 2026 preliminary tax.

Late filing can bring a surcharge of 5%–10% of your tax liability, plus daily interest on late payments. If you're unsure where you stand, now is the time to ask.

3. Claim every tax credit you're entitled to

Every year, contractors miss out on tax credits and reliefs they're entitled to. Here are the main ones to check:

• Rent tax credit: Up to €1,000 per person, or €2,000 for jointly assessed couples.
• Mortgage interest tax credit: Worth up to €1,250 for 2025, falling to €625 for 2026, which is currently its final year.
• Medical expenses: Claim 20% relief on GP visits, consultant fees, prescriptions and physio.
• Remote working relief: If you work from home, you can claim 30% of your electricity, heating and broadband costs for the days you work there.
• Tuition fees: Relief is available on third-level fees, including many part-time and postgraduate courses.
• Home carer, dependent relative and single person child carer credits: These are some of the most commonly missed credits.
• Check your credits are allocated correctly: If you've moved between contracts, have more than one income or had a life change this year (marriage, a new baby, separation), make sure your credits are split correctly.

Don't forget the four-year rule. You can claim back overpaid tax for up to four years, but claims for 2022 must be made by 31 December 2026. After that, the refund is gone for good.

4. Year-end moves for a Personal Limited Company contractor

If you contract through your own Personal Limited Company, review how you pay yourself. The right balance of salary, pension contributions and your other tax planning requirements depends on your circumstances. A quick review before year-end can help you avoid paying more tax than you need to.

5. Think about gifting before 31 December

If you're helping family members financially, the Small Gift Exemption lets you give up to €3,000 per person each year completely tax-free. A couple can give €6,000 to the same person. It's use-it-or-lose-it, so gifts need to be made before 31 December to count for 2026.

It's also worth knowing that a child can currently receive up to €400,000 in gifts and inheritances from their parents over their lifetime before Capital Acquisitions Tax applies (the Group A threshold).

6. Stay up to date with Budget 2027 (6 October)

Budget 2027 will be announced on Tuesday, 6 October 2026. Make sure you know the latest updates and changes, and how they will affect you and your contracting business.

Things to watch for:

• Changes to income tax bands, USC and personal tax credits
• Updates to reliefs such as the rent tax credit and mortgage interest tax credit
• Changes that affect company directors, pensions and small businesses
• Measures that take effect from 1 January 2027, which could affect when you make pension contributions, gifts or equipment purchases

We'll share a Budget 2027 summary for contractors after the announcement, so keep an eye on your inbox.

7. Claim the Small Benefit Exemption Scheme

Under the Small Benefit Exemption Scheme, you can receive up to five non-cash benefits worth up to €1,500 in total each year, completely tax-free. It's one of the most popular and straightforward benefits available to contractors in Ireland.

• Gift cards (e.g. One4All, Me2You) qualify
• Cannot be cash or redeemable for cash
• Up to five vouchers per year, capped at €1,500 in total
• Unused allowance doesn't roll over, so claim it before your last payroll is due before 31 December

Talk to Icon Accounting

Tax planning doesn't have to be complicated. As Ireland's largest specialist accountancy provider for contractors, we've helped thousands of contractors keep more of what they earn, with fixed fees, no hidden costs and a dedicated account manager in your corner.

Want a year-end tax review? Get in touch with your account manager or contact us on 01 807 7106 or info@iconaccounting.ie.