At Gorman Penrose Quigley we believe the preliminary tax deadline catches out more companies than it should, not because the rules are complicated, but because the date creeps up quietly in the run-up to Christmas. If your company has a 31 December year end, the clock is already ticking towards 23 November 2026, and getting this payment wrong, late, or short can cost you in interest charges that are entirely avoidable.

Why 23 November matters

For companies with an accounting period ending on 31 December, preliminary tax is due by the 23rd of the eleventh month of that accounting period. That means the payment for the year ending 31 December 2026 falls due on 23 November 2026. Miss it, or underpay, and Revenue will apply interest from that date until the shortfall is cleared.

This is separate from your CT1 return and the final balance of tax, which are due by the 23rd of the ninth month after the year end, so for a December year end that means 23 September 2027. Preliminary tax is essentially an advance payment based on your estimate of the year’s profits, paid before the year has even finished.

Small company or large company?

The rules differ depending on the size of your company for corporation tax purposes, and this is where confusion often sets in.

Small companies pay their entire preliminary tax liability in one instalment, by the 23rd of the eleventh month. There is no earlier payment required. Most owner-managed SMEs fall into this category, since the test is based on the company’s tax bill in the prior accounting period being below a modest threshold.

Large companies, by contrast, pay in two instalments. The first instalment is due by the 23rd of the sixth month of the accounting period, and a second instalment follows by the 23rd of the eleventh month to bring the total paid up to the required level. If your company has grown significantly or has a group structure, it is worth checking which category you now fall into, because the test is applied year on year and a company can move between categories.

How much do you actually need to pay?

For most small companies, the safe option is to pay the lower of two figures:

• 90% of the final corporation tax liability for the current accounting period, or

• 100% of the corporation tax liability for the previous accounting period.

Whichever of these is lower is the amount you are required to pay by 23 November. If your profits have risen this year, basing the payment on last year’s figure can actually work in your favour, provided last year’s liability was accurately calculated and paid on time.

A worked example

Say a company expects its corporation tax bill for the year ending 31 December 2026 to come to approximately €50,000, based on management accounts and a realistic profit forecast. Ninety per cent of that figure is €45,000, and that is the amount due by 23 November 2026. The remaining €5,000, plus any adjustment once the accounts are finalised, is paid alongside the CT1 return by 23 September 2027.

If last year’s liability was lower, say €40,000, the company could instead choose to pay that full amount now and settle the balance later, once this year’s figures are confirmed. Either route is acceptable, as long as the chosen figure is met in full and on time.

The cost of getting it wrong

Underpaying preliminary tax, or missing the deadline altogether, triggers interest from the due date until the shortfall is paid. That interest accrues daily, and it applies regardless of whether the underpayment was deliberate or simply the result of an overly optimistic profit estimate made too early in the year. There is no grace period for a genuine miscalculation, so it pays to be realistic rather than overly confident when forecasting.

A quick checklist before 23 November

• Confirm whether your company is classed as small or large for this accounting period.

• Pull together up-to-date management accounts to estimate this year’s profit.

• Calculate 90% of the estimated liability and compare it with 100% of last year’s bill.

• Pay the lower figure through ROS by 23 November 2026.

• Diarise 23 September 2027 for the CT1 return and final balance.

• If your profits have changed significantly mid-year, revisit the estimate before the deadline rather than after it.

Getting preliminary tax right is one of those jobs that takes an hour or two now and saves a headache later. If you would like help confirming your figure, or simply want a second pair of eyes on the calculation before the deadline, the team at Gorman Penrose Quigley is on hand. Call us on , email info@gqp.ie, or visit gqp.ie to arrange a quick review before 23 November arrives.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

At Gorman Penrose Quigley we believe that reimbursing business travel and subsistence expenses correctly is one of the simplest ways for Irish employers to support their teams while staying fully compliant with Revenue. When staff or directors travel for work, the business can usually cover their costs without any income tax, USC or PRSI being charged. However, the rules are specific, and payments that do not meet them can quickly become taxable, creating liabilities for both the business and the employee.

Travel and subsistence is also an area that Revenue examines closely during audits, particularly for directors of owner-managed companies. Here are five rules every employer should understand before making tax-free payments.

1. It Must Be Genuine Business Travel

Tax-free payments are only available for travel undertaken in the performance of an employee’s duties. The most common mistake is reimbursing the cost of commuting. Journeys between home and an employee’s normal place of work are treated as private travel, regardless of how far the employee lives from the office or how often they travel.

Business travel includes journeys from the normal place of work to a client’s premises, a supplier, another branch or a temporary workplace. Where an employee travels directly from home to a temporary place of work, the amount that can be reimbursed tax free is generally limited to the shorter of the distance from home or from their normal place of work. Getting this calculation right is essential if your staff regularly travel to customer sites or projects.

2. Choose Vouched Expenses or Civil Service Rates

Employers can reimburse business travel and subsistence in two main ways. The first is to repay the actual, vouched cost, supported by receipts, for items such as train fares, flights, accommodation and meals. The second is to pay flat-rate allowances that do not exceed the rates set for civil servants, which Revenue accepts as the maximum that can be paid tax free.

For employees using their own car for business, motor travel rates are based on the size of the engine, or a separate rate for electric vehicles, and the number of business kilometres travelled in the year. Paying more than the civil service rates means the excess is taxable. Flat round-sum allowances that are not linked to actual business journeys are treated as taxable pay and must be processed through payroll.

3. Meet the Conditions for Subsistence Payments

Subsistence allowances are designed to cover the cost of meals and accommodation when an employee is working away from their normal place of work. Day subsistence can generally only be paid tax free where the employee is away for at least five hours and is at least eight kilometres from their normal place of work, or from home if that is nearer. Different rates apply depending on whether the absence is more than five hours or more than ten hours.

Overnight rates apply where an employee must stay away overnight for work, with reduced rates applying to longer stays in the same location. For travel abroad, separate rates apply for each country. If you provide meals or accommodation directly, or the employee’s costs are covered elsewhere, subsistence should not also be paid for the same period.

4. Keep Detailed Records

Tax-free payments must be supported by records. For travel, this means a record of each business journey, including the date, the purpose, the start and end points and the distance travelled. For subsistence, records should show the dates and times of absence and the location where the work took place. Where actual costs are reimbursed, receipts should be retained.

Employers should keep these records for at least six years and review claims before paying them. During a Revenue audit, missing or incomplete records can lead to payments being treated as taxable, with PAYE, USC, PRSI, interest and penalties due. Simple mileage apps and expense management tools can make record keeping much easier for everyone.

5. Report Payments to Revenue

Since 2024, employers have been required to report tax-free travel and subsistence payments to Revenue under the Enhanced Reporting Requirements. Details of each payment must be reported on or before the date the payment is made, including the type of expense and the amount.

This has made travel and subsistence payments far more visible to Revenue, so accuracy matters more than ever. Make sure whoever processes your expenses understands the reporting requirements, and that your payroll or expenses software is set up to report payments correctly.

Directors and the Self-Employed

The same rules apply to company directors as to other employees, and Revenue pays particular attention to claims made by directors of their own companies. Claims should be reasonable, properly supported and genuinely related to business travel.

Sole traders and partners are treated differently. Rather than receiving tax-free allowances, they generally claim the actual business proportion of their travel and motor costs as expenses in their accounts. Understanding which rules apply to you is the first step to claiming correctly.

Get It Right and Save Tax

Business travel and subsistence payments are a valuable way to cover the genuine costs your team incurs, without the burden of tax. By following the rules on business travel, using approved rates, meeting the subsistence conditions, keeping proper records and reporting payments on time, you can make these payments with confidence.

At Gorman Penrose Quigley, we help employers and directors set up compliant expenses policies, apply the correct rates and meet Revenue’s reporting requirements.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

We here at Gorman Penrose Quigley know that late payment is one of the most persistent problems facing Irish SMEs. You have delivered the goods or completed the work, issued your invoice on time and then waited weeks, or even months, to be paid. Meanwhile, your own bills, wages and tax liabilities still need to be met. Many business owners do not realise that Irish law gives them clear rights when business customers pay late, including the right to charge interest and claim compensation. Understanding and using these rights can help you get paid faster and protect your cash flow.

The Real Cost of Late Payment

Late payment does far more than cause frustration. Every overdue invoice is money your business has earned but cannot use. It can force you to rely on an overdraft, delay paying your own suppliers, postpone investment or, in the most serious cases, threaten the survival of an otherwise profitable business. Smaller businesses supplying larger customers are often hit hardest, as they may feel they lack the bargaining power to push back.

What the Law Says

Ireland’s late payment regulations, which implement EU rules, apply to commercial transactions between businesses and between businesses and public bodies. They do not apply to sales to private consumers.

Where no payment date has been agreed, payment is generally due within 30 days of the customer receiving your invoice, or receiving the goods or services if that is later. Businesses are free to agree their own payment terms, but terms longer than 60 days are only permitted where they are expressly agreed and are not grossly unfair to the supplier. Public bodies are generally required to pay within 30 days.

Your Right to Statutory Interest

If a business customer pays late, you are entitled to charge interest on the overdue amount from the day after payment was due until it is paid in full. The statutory rate is set at eight percentage points above the European Central Bank’s main refinancing rate, and is reviewed twice a year. This is a significant rate, designed to discourage customers from using their suppliers as a source of free credit.

Interest is calculated as simple interest on the amount outstanding, and you do not need to have included an interest clause in your contract to claim it, as the right exists under the law.

Fixed Compensation for Recovery Costs

In addition to interest, you are entitled to claim a fixed sum as compensation for the cost of recovering a late payment. The amount depends on the size of the debt: €40 for amounts under €1,000, €70 for amounts from €1,000 to under €10,000, and €100 for amounts of €10,000 or more. Where your actual recovery costs are higher, you may be able to claim reasonable additional costs.

These amounts may seem modest individually, but across a number of overdue invoices they add up, and simply making customers aware of them can encourage faster payment.

Contract Terms Cannot Simply Remove Your Rights

Some larger customers try to include terms in their contracts that exclude or limit late payment interest or compensation. Under the regulations, terms that exclude interest or compensation for recovery costs are presumed to be grossly unfair and may be unenforceable. This gives smaller suppliers important protection, even when they have little room to negotiate.

Putting Your Rights Into Practice

The most effective way to use the law is to make your terms clear from the outset. Include your payment terms and your right to charge statutory interest and compensation in your terms and conditions, quotes and contracts. Show the payment due date clearly on every invoice, along with a short statement that interest and compensation may be charged on late payments.

When an invoice becomes overdue, send a prompt reminder, followed by a firmer letter if payment does not arrive. A final demand that sets out the interest and compensation due often prompts payment from customers who have been prioritising other suppliers. If payment is still not received, debt collection or legal proceedings may be the next step.

Balancing Rights and Relationships

Charging interest is a right, not an obligation. Many businesses choose to use it selectively, for example with persistent late payers, while taking a more flexible approach with valued long-term customers experiencing temporary difficulties. Even where you decide not to charge interest, the fact that you could can strengthen your position in conversations about payment.

It is also worth remembering that interest and compensation received from customers form part of your business income and should be recorded correctly in your accounts.

Strong Credit Control Comes First

The law works best alongside good credit control. Check the creditworthiness of new customers, agree clear terms before starting work, invoice promptly and accurately, and monitor your debtor list regularly. Offering convenient payment methods and following up consistently can significantly reduce the number of invoices that become overdue in the first place.

Get Paid What You Are Owed

You have earned the right to be paid on time. By understanding the late payment rules, building them into your terms and applying them consistently, you can improve your cash flow and reduce the time and stress spent chasing customers.

At Gorman Penrose Quigley, we help businesses improve credit control, manage cash flow and put the right processes in place to get paid faster.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

At Gorman Penrose Quigley we believe that selling services beyond Ireland is one of the best ways for ambitious SMEs to grow. Consultants, designers, software developers, marketing agencies, engineers and many other service businesses now work with clients across the EU and the UK as a matter of routine. However, the VAT rules for cross-border services are quite different from those that apply at home, and getting them wrong can mean charging VAT when you should not, failing to charge it when you should or missing important reporting obligations.

The First Question: Business or Consumer?

For cross-border services, the most important question is whether your customer is a business or a private consumer. The VAT treatment often depends entirely on the answer, so establishing your customer’s status at the outset is essential.

For business customers in the EU, this usually means obtaining and verifying their VAT number. For customers outside the EU, including the UK, you should keep evidence that they are in business, such as company registration details or other commercial information.

Selling Services to EU Businesses

Under the general rule, when you supply services to a business customer in another EU country, the supply is treated as taking place where the customer is established. In practice, this means you do not charge Irish VAT. Instead, your customer accounts for VAT in their own country under the reverse charge system.

To apply this correctly, verify your customer’s VAT number using the EU’s online validation system and keep a record of the check. Your invoice should show both your VAT number and your customer’s, along with a clear statement that the reverse charge applies. These sales must also be reported on your Irish VAT return and on your periodic EU sales listing to Revenue. Missing the sales listing is a common error and can attract penalties.

Selling Services to EU Consumers

When selling to private individuals in other EU countries, the general rule is that the supply takes place where your business is established, so Irish VAT is normally charged.

There are important exceptions. Electronically supplied services, such as software downloads, online courses, streaming and other digital services, along with telecommunications and broadcasting services, are generally taxed in the country where the consumer lives. Smaller businesses can continue to charge Irish VAT until their total cross-border sales of these services and certain goods to EU consumers exceed an EU-wide threshold. Above that level, VAT must be charged at the rate applying in each customer’s country. Rather than registering in every country, businesses can use the One Stop Shop system to report and pay this VAT through a single return in Ireland.

Selling Services to the UK

Since Brexit, the UK is treated as a country outside the EU for VAT purposes. Northern Ireland follows special rules for goods, but for services it is generally treated in the same way as the rest of the UK.

Services supplied to UK business customers are generally outside the scope of Irish VAT, so no Irish VAT is charged and the UK customer deals with any UK VAT due. Unlike EU sales, these supplies are not included on the EU sales listing.

For UK consumers, the position depends on the type of service. Many services are subject to Irish VAT under the general rule, but certain services, such as consultancy, legal, accountancy, advertising and some intellectual property services, are not subject to Irish VAT when supplied to private customers outside the EU. If you sell digital services to UK consumers, you may need to register for VAT in the UK, as there is generally no minimum threshold for overseas businesses supplying these services.

Watch for Special Rules

Some services follow their own rules regardless of whether the customer is a business or consumer. Services connected with land and buildings, such as architectural or construction-related work, are generally taxed where the property is located. Admission to events, passenger transport, restaurant and catering services and the short-term hire of vehicles also have specific rules. In some cases, these can require you to register for VAT in another country, so check the treatment carefully before quoting or invoicing.

Reclaiming VAT on Your Costs

A common concern is whether you can still reclaim Irish VAT on your costs if you are not charging Irish VAT to your overseas customers. In many cases you can. VAT incurred on costs relating to services supplied abroad can generally be reclaimed, provided those services would have been taxable if supplied in Ireland.

Avoiding Common Mistakes

The most frequent errors include charging Irish VAT to EU business customers, failing to verify VAT numbers, omitting reverse charge wording from invoices, missing EU sales listings and overlooking foreign registration requirements for digital services. Keeping clear records of each customer’s status, location and the basis for your VAT treatment will protect your business if Revenue ever reviews your returns.

Grow Internationally With Confidence

Selling services abroad opens up enormous opportunities, but the VAT rules require careful attention. Reviewing how you treat each type of customer and service, and setting up your invoicing and reporting correctly from the start, allows you to expand with confidence.

At Gorman Penrose Quigley, we help Irish businesses understand the VAT rules for international trade, set up compliant invoicing and meet their reporting obligations at home and abroad.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

We here at Gorman Penrose Quigley know that starting a new business is an exciting time, full of plans, ideas and ambition. Amid the work of finding customers, setting up premises and building a brand, tax registrations can easily slip down the list. Yet getting them right from the outset is one of the most important steps you will take. Registering late, registering for the wrong taxes or missing an obligation altogether can lead to backdated liabilities, interest and penalties at the very time your business can least afford them.

If you are planning to launch a business in 2027, the first few weeks are the ideal time to put the right foundations in place. Here are five tax registrations every new Irish business owner needs to get right.

1. Register for the Right Income or Corporation Tax

Your first decision is how to structure the business, as this determines which taxes you register for. If you trade as a sole trader, you will need to register with Revenue for income tax as a self-employed person. You will then be responsible for filing an annual tax return and paying your tax under the self-assessment system.

If you set up a limited company, the company must first be incorporated with the Companies Registration Office and then registered with Revenue for corporation tax. The company is a separate legal entity, with its own tax obligations and filing deadlines, while you as a director will have your own personal tax responsibilities.

If you trade under a name other than your own, you may also need to register a business name with the Companies Registration Office. Choosing the right structure has significant tax, legal and financial implications, so it is worth taking advice before you decide.

2. Consider VAT Registration Carefully

VAT registration becomes compulsory once your turnover exceeds, or is likely to exceed, the relevant threshold, which differs for businesses supplying goods and those supplying services. Many new business owners wait too long, only to discover they should have registered earlier and must account for VAT on past sales they did not charge it on.

In some cases, registering for VAT voluntarily before reaching the threshold can be beneficial. It allows you to reclaim VAT on start-up costs such as equipment, fit-out and stock, which can help cash flow in the early months. However, if your customers are mainly consumers who cannot reclaim VAT, registering may make your prices less competitive. If you plan to trade with businesses in other EU countries or sell online to consumers across the EU, additional VAT rules may apply from your very first sale.

3. Register as an Employer Before Your First Payroll

If you plan to employ staff, including family members, you must register as an employer with Revenue before you make the first payment of wages. As an employer, you will be responsible for deducting income tax, USC and PRSI from employees’ pay, reporting each payment to Revenue in real time and paying over the amounts deducted.

This also applies if you set up a company and intend to pay yourself a salary as a director. Running payroll correctly from the start, including auto-enrolment pension contributions for eligible employees, avoids the stress of correcting errors later. Choosing reliable payroll software or outsourcing payroll can make this much simpler.

4. Check for Sector-Specific Registrations

Depending on your business, other registrations may be required. If you work in construction, forestry or meat processing, Relevant Contracts Tax rules are likely to apply, whether you are a principal contractor engaging subcontractors or a subcontractor yourself. Subcontractors who are not registered with Revenue can face significant deductions from their payments.

If you plan to import or export goods outside the EU, including to and from Great Britain, you will need an EORI number for customs purposes. Businesses dealing in certain products, such as alcohol, tobacco or fuel, may also need specific licences. Checking these requirements early prevents delays when you start trading.

5. Set Up Revenue Online Access and Plan Your Deadlines

Most tax returns and payments must now be filed online through Revenue’s systems, so setting up your online access early is essential. Once registered, make a note of your key deadlines, including VAT return dates, payroll reporting, preliminary tax payments and annual returns.

New business owners are often caught out by the timing of their first tax bills. Sole traders, for example, may face a larger payment in their second year, when tax for the first year falls due alongside preliminary tax for the second. Setting aside a portion of your income from day one can prevent cash flow problems later.

Don’t Miss Start-Up Reliefs

Some new businesses may also qualify for tax reliefs designed to support start-ups. Certain new companies may benefit from relief from corporation tax in their early years, linked to the employer PRSI they pay, and there are reliefs for individuals who start a business after a period of unemployment. Conditions apply, so it is worth checking whether you qualify when you register.

Start Your Business on the Right Footing

Getting your tax registrations right at the beginning saves time, money and stress, and allows you to focus on what matters most: building your business. A short conversation with an adviser before you start trading can help you choose the right structure, register for the right taxes and plan for your first tax bills.

At Gorman Penrose Quigley, we help new business owners choose the right structure, complete their tax registrations and set up the systems they need to start trading with confidence.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

At Gorman Penrose Quigley we believe that rental property can be a valuable source of income and long-term wealth for Irish business owners and investors. Yet the tax rules for landlords are more complex than many people realise, and simple mistakes can mean paying more tax than necessary or facing penalties and interest when errors come to light. Whether you own a single apartment or a portfolio of properties, understanding the most common pitfalls can help you keep more of your rental income and stay on the right side of Revenue.

Rental profits in Ireland are generally subject to income tax, USC and PRSI at your marginal rates, which means that for many landlords, close to half of every euro of profit can go in tax. Getting the details right matters. Here are five of the most common tax mistakes Irish property owners make.

1. Confusing Repairs With Improvements

One of the most frequent errors is claiming the cost of improvements as a deductible expense against rental income. Repairs and maintenance, such as fixing a leaking roof, repainting or replacing a broken boiler with a similar model, are generally deductible. Improvements, such as building an extension, adding a new bathroom or significantly upgrading the property, are treated as capital expenditure and cannot usually be deducted from rental income.

However, capital improvements are not wasted from a tax perspective. They can generally be deducted when calculating Capital Gains Tax on a future sale of the property. Keeping clear records of what was spent, when and why will help ensure every cost is treated correctly, both now and when you eventually sell.

2. Missing Deductions and Reliefs

Many landlords overlook expenses they are entitled to claim. Allowable costs can include mortgage interest on the property, insurance, management and letting agent fees, accountancy fees, service charges, repairs and the cost of registering tenancies. Furniture, fittings and appliances provided with the property can usually be claimed through capital allowances spread over several years.

There are also specific reliefs worth knowing about. Certain expenses incurred before letting a property that has been vacant for a period may be deductible, subject to conditions. Smaller landlords may be entitled to a relief on part of their residential rental income, provided they meet requirements such as remaining in the rental market for a minimum period. Missing these can add up to a significant overpayment of tax over time.

3. Failing to Meet the Conditions for Deductions

Some deductions depend on meeting specific conditions. For residential property, the deduction for mortgage interest generally requires the tenancy to be registered with the Residential Tenancies Board. Failing to register, or registering late, can mean losing the deduction, which for many landlords is the most valuable expense they claim.

Similar conditions apply to other reliefs, which may require tenancies to be registered and the landlord’s tax affairs to be in order. It is worth checking that every tenancy is properly registered and that registrations are kept up to date as tenancies change.

4. Getting Filing Obligations Wrong

Many landlords, particularly those who also have a job, assume their tax affairs are dealt with through PAYE. In reality, rental income often brings you into the self-assessment system, meaning you must file an annual tax return and pay preliminary tax under the Pay and File deadlines. Smaller amounts of rental income may be declared differently, but the thresholds are modest and easily exceeded.

Missing a filing obligation or failing to pay enough preliminary tax can lead to surcharges and interest. If you have recently started letting a property, or your rental income has increased, check whether your filing obligations have changed.

5. Mishandling Losses, Joint Ownership and Special Situations

Rental losses can usually be offset against rental profits from other properties in the same year, and unused losses can be carried forward against future rental income. However, they cannot generally be used against other income, such as salary or business profits, which surprises many landlords.

Special rules also apply in certain situations. Where a property is let to a relative at less than the market rent, any losses may be restricted. Jointly owned property must be taxed according to each owner’s share. Landlords living abroad face different collection rules, and tenants or agents may be required to withhold tax from rent paid to them. Renting a room in your own home to a long-term lodger can be tax free up to a limit under rent-a-room relief, but this does not generally extend to short-term guests.

Keep Records and Plan Ahead

Good records are the foundation of accurate rental tax returns. Keep copies of rent received, invoices for all expenses, mortgage interest statements and tenancy registration details, and retain them for at least six years. It is also worth reviewing your overall position from time to time, including how your properties are owned and financed, and what the tax implications would be if you sold or passed them on.

Make the Most of Your Rental Income

Rental property can be a rewarding investment, but only if the tax side is managed carefully. By avoiding these common mistakes, claiming the deductions and reliefs you are entitled to and meeting your filing obligations, you can protect your returns and avoid unwelcome surprises.

At Gorman Penrose Quigley, we help landlords prepare accurate rental tax returns, claim every relief available and plan their property affairs with confidence.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

We here at Gorman Penrose Quigley know that many Irish SME owners assume sustainability reporting is something only large corporations need to worry about. In legal terms, that is largely true, as the formal EU reporting rules apply to bigger companies. In practice, however, those large companies cannot report on their own impact without information from the businesses that supply them. As a result, questions about energy use, emissions and environmental practices are increasingly landing on the desks of small and medium-sized businesses, often with little warning.

How Sustainability Reporting Trickles Down

Large companies across the EU are required, or expect to be required, to report on their environmental and social impact. A significant part of that impact sits not within their own operations but across their supply chain. A large retailer’s carbon footprint, for example, includes the emissions generated by the businesses that produce, transport and package the goods it sells.

To measure this, large companies need data from their suppliers. That is why SMEs that have never been directly subject to any sustainability regulation are now receiving questionnaires, supplier surveys and requests for information as part of tenders and contract renewals.

What Customers Are Asking For

The questions vary, but common requests include details of your energy and fuel consumption, estimates of your carbon emissions, information about waste and recycling, and whether you have an environmental policy in place. Some customers also ask about employee matters, health and safety, diversity and how the business is governed.

For many SMEs, the first request can feel overwhelming, particularly if the information has never been gathered before. Yet much of the underlying data, such as electricity bills, fuel costs and waste collection invoices, already exists within your accounting records.

It Is Not Only Customers

Banks and lenders are also paying closer attention to sustainability. Financial institutions are expected to understand the climate-related risks in their lending, and many now ask business customers about their environmental practices when assessing applications or reviewing facilities. Some offer more favourable terms for sustainability-related investments.

Public sector buyers are increasingly including environmental criteria in tenders, and investors are asking similar questions of the businesses they back. Across the board, being able to demonstrate your approach to sustainability is becoming part of doing business.

The EU Rules Are Changing, But the Direction Is Clear

The EU’s sustainability reporting rules have been revised and simplified in recent times, and the number of companies directly required to report has been reduced. Some SME owners may take this as a sign that the pressure will ease. However, many large companies continue to set their own sustainability targets, respond to investor expectations and need supplier data to measure progress.

At EU level, a voluntary reporting standard for SMEs has also been developed to give smaller businesses a simpler, consistent way to share sustainability information with customers, lenders and investors. This is intended to help SMEs respond once, in a recognised format, rather than completing a different questionnaire for every customer.

The Cost of Not Being Ready

Businesses that cannot provide basic sustainability information risk falling behind competitors that can. Supplier questionnaires are increasingly used to shortlist and score suppliers, and an incomplete or missing response can count against you. In some cases, larger customers may choose to reduce their supplier base and prioritise those who can support their reporting needs.

The Opportunity Behind the Requirement

Sustainability reporting is not only a compliance exercise. Measuring your energy use and waste often reveals opportunities to cut costs. Lower energy consumption reduces bills, less waste means lower disposal costs and more efficient processes can improve margins. Demonstrating strong environmental credentials can also help you win new customers and stand out in tenders.

Practical Steps to Get Started

Start by measuring the basics. Gather information on your electricity, gas, fuel and water use, along with waste volumes, ideally covering the past year. This provides a baseline against which future progress can be measured.

Next, consider estimating your carbon footprint. Simple tools and support programmes are available to help SMEs calculate their emissions without needing specialist expertise. Local Enterprise Offices and other State bodies offer advice and training to help smaller businesses take these first steps.

Put a short environmental policy in place, setting out your commitments and the practical actions you are taking. Assign responsibility for sustainability to someone in the business, so requests from customers are handled consistently and on time.

Finally, keep evidence. Customers and lenders increasingly want to see how figures were calculated, so retain the invoices, meter readings and records that support your data.

Prepare Now and Stay Ahead

Sustainability reporting is reaching Irish SMEs whether or not they are directly regulated. Businesses that start gathering information now will be able to respond confidently to customers, lenders and tenders, and may uncover valuable savings along the way.

At Gorman Penrose Quigley, we help businesses organise the financial data behind their sustainability reporting, identify cost savings and respond confidently to customer and lender requests.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

At Gorman Penrose Quigley we believe that attracting and keeping the right people is one of the biggest challenges facing growing Irish SMEs. Competing with large multinationals on salary alone is often impossible, particularly for younger businesses with limited cash. Offering employees a share in the future success of the company can be a powerful alternative. The Key Employee Engagement Programme, known as KEEP, was designed to make this more attractive by providing favourable tax treatment on share options granted by qualifying SMEs.

Why Equity Can Be So Effective

Giving key employees a stake in the business aligns their interests with yours. When the company grows in value, they share in that success, which encourages loyalty, commitment and a long-term focus. For businesses that cannot match the salaries offered by larger competitors, equity can bridge the gap and help secure talent that might otherwise be out of reach.

Share options are a common way to do this. They give an employee the right to buy shares in the company at a fixed price at some point in the future. If the company grows, the shares may be worth considerably more than the price the employee pays.

How Share Options Are Normally Taxed

Without a special scheme, the tax treatment of share options can be unattractive. When an employee exercises an option, the difference between the market value of the shares and the price paid is generally treated as income and is subject to income tax, USC and PRSI. Since 2024, employers have been responsible for operating these deductions through payroll.

The difficulty is that this tax arises when the option is exercised, even though the employee may not have sold any shares and may have no cash to pay the bill. In a private company where there is no ready market for shares, this can make share options far less appealing.

What KEEP Offers

KEEP changes this treatment for qualifying share options. Instead of income tax, USC and PRSI arising when the option is exercised, no tax is payable at that point. The employee is instead liable to Capital Gains Tax on the gain when they eventually sell the shares.

This has two significant advantages. The tax is deferred until the employee actually realises value from the shares, and the gain is taxed at the Capital Gains Tax rate rather than at higher combined income tax, USC and PRSI rates. For employees, this can make share options far more valuable and easier to understand.

The Main Conditions

To benefit from KEEP, a number of conditions must be met. The company must be an unquoted SME carrying on a qualifying trade, and certain activities are excluded. The employee must work for the company for a minimum number of hours each week, or devote most of their working time to it.

The options must generally be granted at an exercise price that is not less than the market value of the shares at the date of grant. There is also a minimum period that must pass before options can be exercised, and a maximum period within which they must be exercised. Limits apply to the total value of shares over which an individual employee can hold options and to the overall value of options a company can grant under the scheme. These rules have been relaxed in recent years, making the scheme more flexible for growing companies.

Practical Points to Consider

Setting up a KEEP scheme requires careful planning. A reliable valuation of the company’s shares at the date of grant is essential, as the exercise price depends on it. The company must also meet annual reporting obligations to Revenue.

It is equally important to consider the commercial terms. What happens if an employee leaves the business? Will shares be bought back, and at what price? How will employee shareholders fit into your existing shareholders’ agreement? Recent changes have made it easier for companies to buy back shares from employees, which can help provide a route to realise value in a private company. Clear leaver provisions and a well-drafted agreement protect both the business and the employee.

Other Options Worth Considering

KEEP is not the only way to share equity with employees. Approved profit sharing schemes allow companies to give shares to employees tax free up to an annual limit, provided they are held in trust for a minimum period. Restricted shares, where employees cannot sell for a set period, can attract a reduction in their taxable value. Some businesses also use cash-based bonus schemes linked to company performance as a simpler alternative.

The right approach depends on your goals, the stage of your business and the employees you want to reward.

Is Equity Right for Your Business?

Sharing ownership is a significant decision. It can be a highly effective way to attract and retain talent, but it also involves dilution, ongoing administration and important legal and tax considerations. Taking advice at the outset helps ensure your scheme is structured correctly, meets the conditions for any relief and delivers the benefits you intend.

At Gorman Penrose Quigley, we help growing businesses design employee share schemes, assess eligibility for KEEP and manage the ongoing reporting and compliance requirements.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

We here at Gorman Penrose Quigley know that Relevant Contracts Tax is one of the most important, and most demanding, compliance areas for construction businesses in Ireland. Whether you are a main contractor engaging subcontractors or a subcontractor working for others, RCT affects how payments are made, how much tax is deducted and how cash flows through your business. Mistakes can lead to substantial penalties, so understanding the key rules is essential.

RCT is a withholding tax system that applies to payments made by principal contractors to subcontractors in the construction, forestry and meat processing sectors. Since Revenue moved the system fully online, nearly every step must be completed electronically and in the correct order. Here are five compliance points every Irish construction business should have firmly in place.

1. Know When RCT Applies

RCT applies where a principal contractor pays a subcontractor under a relevant contract for relevant operations. In construction, relevant operations cover a broad range of work, including building, alteration, repair, extension, demolition, installation of heating, lighting and other systems, and related work such as painting and decorating.

Principal contractors are not limited to traditional building firms. Property developers and certain other businesses connected to construction activity can also be treated as principals and required to operate RCT. If your business regularly engages contractors for construction work, it is worth confirming whether you have RCT obligations, as ignorance of the rules is not accepted as an excuse.

2. Notify Contracts and Payments Before You Pay

The online RCT system places clear obligations on principal contractors. Before making the first payment under a new contract, you must notify Revenue of the contract. Then, before each individual payment is made, you must notify Revenue of the payment. Revenue responds with a deduction authorisation setting out how much tax, if any, must be deducted.

The rate depends on the subcontractor’s tax record. Subcontractors with a strong compliance history are generally given a 0% rate, those registered with Revenue but not meeting the criteria for 0% are typically subject to 20%, and those unknown to Revenue or with serious compliance issues face 35%. Making a payment without first notifying Revenue, or deducting the wrong amount, can lead to penalties linked to the rate that should have applied, so the notification must always come before the payment.

3. Get Employment Status Right

One of the most significant risks in the construction sector is treating workers as subcontractors when they are, in reality, employees. RCT applies only to genuine subcontractors. If a worker is in fact an employee, PAYE, USC and PRSI should be operated through payroll, and the business may also have employment law obligations.

Revenue and the Department of Social Protection look closely at employment status in construction. Factors such as who controls how and when the work is done, whether the worker provides their own equipment, whether they can send a substitute and whether they bear financial risk all play a part. Revenue updated its guidance following a significant Supreme Court decision on employment status, introducing a more structured approach to the assessment. Getting it wrong can result in back taxes, interest and penalties, so status should be reviewed carefully for every engagement.

4. File Returns, Pay on Time and Apply the VAT Reverse Charge

Principal contractors must file RCT returns and pay over any tax deducted by the relevant deadline. Revenue’s system prepares the return based on the payment notifications made during the period, but it remains your responsibility to check it, amend it if necessary and pay the tax due on time.

VAT works differently in construction too. Where RCT applies, the principal contractor generally accounts for the VAT on services received from subcontractors under the reverse charge system, rather than the subcontractor charging VAT on their invoice. Applying the reverse charge correctly is essential, as errors can result in VAT being overpaid, underpaid or claimed incorrectly.

5. Subcontractors: Protect Your Rate and Your Cash Flow

For subcontractors, RCT has a direct impact on cash flow. Having 20% or 35% deducted from every payment can create serious pressure, especially for smaller businesses with tight margins. Keeping your tax affairs fully up to date, filing returns on time and paying liabilities promptly are the best ways to secure and maintain a 0% rate.

Where tax has been deducted, it can be credited against your tax liabilities, and any excess may be refunded once the relevant returns have been filed and your affairs are in order. Keep track of every deduction made and check that the amounts shown by Revenue match your records, so you can claim the full credit due.

Keep Clear Records

For both principals and subcontractors, good records are vital. Keep copies of contracts, contract and payment notifications, deduction authorisations, invoices and payment records. These provide the evidence needed if Revenue reviews your RCT compliance and make it easier to resolve any discrepancies quickly.

Stay Compliant and Protect Your Business

RCT is strict, and the penalties for getting it wrong can be severe. However, with clear processes for checking contracts, notifying payments, assessing employment status, filing returns and keeping records, construction businesses can manage RCT efficiently and avoid costly errors.

At Gorman Penrose Quigley, we help construction businesses and subcontractors manage their RCT obligations, review employment status and stay fully compliant with Revenue.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.

At Gorman Penrose Quigley we believe that the year-end stocktake is one of the most underestimated tasks in running a business. For retailers, wholesalers, manufacturers, hospitality businesses and many others, stock is often one of the largest figures on the balance sheet. Yet the count is frequently rushed, carried out by tired staff at the end of a busy period or estimated from memory. An inaccurate stock figure can distort your profit, lead to paying the wrong amount of tax and raise questions if Revenue ever reviews your accounts.

Why Stock Has a Direct Effect on Your Profit

Your closing stock figure feeds directly into the calculation of your cost of sales, and therefore your profit. In simple terms, the cost of goods you have sold during the year is your opening stock, plus purchases, minus your closing stock.

This means every euro of error in your closing stock changes your profit by the same amount. Overstate your stock and your profit looks higher than it really is, which means you pay more tax than necessary. Understate it and your profit appears lower, which may reduce your tax bill this year but can create problems later, as the error carries into the following year’s accounts.

The Tax Angle

Because stock directly affects taxable profit, it is an area Revenue pays close attention to. During audits and compliance reviews, Revenue often examines stock records and compares gross margins against previous years and against what would be expected for similar businesses. An unusually low margin can suggest that stock has been understated or sales have not been fully recorded.

Accurate, well-documented stock counts help demonstrate that your figures are reliable. If your margins change significantly from one year to the next, having clear records explaining why, such as price changes, waste or write-downs, can save considerable time and concern during a review.

How Stock Should Be Valued

Counting stock is only half the task. Each item must also be valued correctly. Under the accounting standards used by most Irish SMEs, stock is valued at the lower of cost and net realisable value. Cost generally includes the purchase price along with costs such as import duties and delivery charges needed to bring the stock to its current location. For manufacturers, it can also include an appropriate share of production labour and overheads.

Net realisable value is the amount you expect to receive when the stock is sold, less any costs of selling it. Where this is lower than cost, the stock should be written down. Whichever method you use to determine cost, it should be applied consistently from year to year.

Slow-Moving, Damaged and Obsolete Stock

The stocktake is the ideal opportunity to identify items that have not sold, are damaged or have gone out of date. Seasonal goods, discontinued lines, perishable products and items superseded by newer models may be worth far less than you paid for them.

Writing these items down to a realistic value gives a truer picture of your business and ensures you are not paying tax on profits that do not really exist. Make a note of the condition of stock during the count, as this provides the evidence needed to support any write-down.

Getting the Cut-Off Right

Stock movements around the year end can easily cause errors. Goods delivered just before the year end should be included in stock, and the matching purchase invoice should be recorded in the same period. Goods sold and despatched before the year end should be excluded, with the sale recorded.

Pay attention to stock held at other locations, such as warehouses, other branches or with customers on a sale or return basis, as well as goods in transit. Equally, goods you are holding on behalf of customers who have already paid for them should not be counted as your stock.

Goods Taken for Personal Use and Work in Progress

If you take stock from the business for personal use, this should be recorded correctly, as it can have both income tax and VAT consequences. For businesses providing services or carrying out longer projects, such as construction or professional services, work in progress at the year end should also be considered, as it can have a similar effect on profit.

How to Carry Out an Effective Count

Plan the count in advance and choose a time when stock movements can be paused. Organise stock so it is easy to count, use count sheets or scanning technology, and work in pairs so one person counts while another records. Count everything once, mark areas as completed and record the condition of items as you go.

Once the count is complete, compare the results with your stock records and investigate any significant differences. Keep the original count sheets, as they form an important part of your records.

Better Information, Better Decisions

An accurate stocktake does more than support your tax return. It reveals which products sell well and which do not, highlights waste or losses and helps you make better buying decisions for the year ahead. Lenders, investors and potential buyers will also place greater reliance on accounts supported by a careful stock count.

At Gorman Penrose Quigley, we help businesses plan their year-end stocktake, value stock correctly and produce accounts that give a true picture of their performance.

If you would like to discuss your business, contact us on or email info@gqp.ie or visit gqp.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.