If you’re self-employed or running a small business in Ireland, it’s easy to overlook a few things that can end up costing you, either in unnecessary tax or avoidable hassle!
Here are five mistakes we see all the time, plus a simple way to stay clear of them.
1. Mixing Business and Personal Spending
Using the same bank account for personal and business expenses makes it harder to claim tax relief. If Revenue ever raises queries it can be difficult to explain the nature of an expense.
Tip: Open a separate business account. Even if you’re a sole trader, it can make life much easier at tax time and it looks more professional.
2. Not Keeping Proper Receipts
Many people still think a bank statement is enough. This is often not the case and if you can’t produce a valid receipt or invoice, Revenue can deny the expense.
Tip: As a starting point, keep a small folder or envelope in the van, glovebox, or your desk drawer. Every time you get a receipt, stick it straight in there. Doesn’t need to be perfect, just don’t throw them out.
3. Missing Out on Allowable Deductions
You might be paying more tax than you need to, simply by not knowing what you’re entitled to claim. Things like mileage, home office costs, small tools or equipment, and pension contributions can all reduce your tax bill.
Tip: Get things reviewed. We often spot simple deductions or reliefs clients weren’t aware of.
4. Missing Deadlines
This one’s very avoidable. If you miss a filing deadline (even by a day) Revenue can hit you with a late penalty. It’s automatic, and interest kicks in too if there’s tax owed.
Tip: Set reminders, or let us handle the deadlines for you. That way you’re never caught off guard.
5. Registering the Wrong Way (or Not at All)
We see this more than you’d think. Someone starts trading, doesn’t register for income tax, or signs up for VAT when they didn’t need to. Or they think they’re registered, but never actually are.
Tip: Before registering anything, get advice. Sorting it properly from the start saves time, paperwork, and potential penalties later.
Final Word
Most business owners want to do things right—they’re just busy. But even simple tax mistakes can cost you time, money, and stress. If you want peace of mind and to only pay what you owe, contact us.
