Every euro you spend on your trade business that you don't track is potentially money lost at tax time. Yet most Irish tradespeople leave hundreds — sometimes thousands — of euros on the table each year because they don't track expenses properly. Here's how to fix that.

Why Expense Tracking Matters

As a self-employed tradesperson, you pay tax on your profits — that's income minus allowable expenses. The more legitimate business expenses you track, the less tax you pay.

Example: You earn €60,000 in a year. If you track €15,000 in business expenses, you pay tax on €45,000. If you only track €10,000 (because you lost receipts), you pay tax on €50,000. At 40% marginal rate, that's €2,000 extra tax — just because of poor record-keeping.

What Expenses Can You Claim?

Here's what Irish tradespeople can typically deduct:

Materials and Supplies

Pipes, fittings, cables, timber, plasterboard
Consumables: tape, screws, fixings, sealant
PPE: safety boots, gloves, hard hats, hi-vis
Workwear with your business logo

Tools and Equipment

Hand tools and power tools
Testing equipment (multimeters, pipe cameras, etc.)
Ladders, scaffolding, access equipment
Tool storage (boxes, bags, van racking)

Note: Items over €1,000 may need to be depreciated over several years rather than deducted immediately. Ask your accountant.

Vehicle Costs

Your van is probably your biggest expense. You can claim:

Fuel for business journeys
Insurance (business portion)
Servicing and repairs
Tolls and parking
Van lease or purchase costs

Private use: If you use your van privately, you'll need to apportion expenses. A simple mileage log helps establish the business/private split.

Running Costs

Phone bills (business portion)
Broadband
Software subscriptions (TradeTime, accounting software)
Trade association memberships
Professional certifications and training

Insurance

Public liability insurance
Professional indemnity
Employer's liability (if you have staff)
Tool and equipment insurance

Home Office

If you do admin from home (quoting, invoicing, bookkeeping), you can claim a portion of:

Heating and electricity
Broadband
Rent or mortgage interest (proportional to office space)

Revenue accepts a simple calculation based on the number of rooms used for business.

Professional Fees

Accountant fees
Legal fees (for business matters)
Bank charges on business account
Credit card processing fees

What You Can't Claim

Not everything is deductible:

Personal expenses: Food (with some exceptions), regular clothing, personal phone use
Fines and penalties: Parking tickets, speeding fines
Personal portion: If something's used personally and for business, only the business portion is deductible
Initial capital: Money you put into the business isn't an expense

How to Track Expenses

The goal is simple: capture every business expense with proof, organised for easy retrieval.

The Old Way (Don't Do This)

Shoebox of receipts, sorted once a year in a panic before your accountant deadline. Receipts fade, get lost, or become unreadable. You miss deductions. Your accountant charges extra for the mess.

The Better Way

1. Separate business and personal banking

Open a dedicated business account. Every euro in and out is business-related. This alone simplifies tracking enormously.

2. Photograph receipts immediately

Thermal receipts fade. Paper gets wet in your van. The moment you get a receipt, photograph it with your phone. Many apps (including TradeTime) let you snap and categorise receipts on the spot.

3. Use accounting software

Apps like Xero, QuickBooks, or dedicated expense trackers connect to your bank account and categorise expenses automatically. You just need to review and approve.

4. Weekly review

Spend 15 minutes every Friday reviewing the week's expenses. Categorise anything missed, add notes where needed. This is much easier than doing a year's worth in January.

Expense Categories for Tradespeople

Set up these categories in your accounting software:

Materials: Items used on jobs
Tools: Equipment purchases
Vehicle — Fuel: Diesel/petrol
Vehicle — Other: Insurance, repairs, tolls
Phone & Internet: Communication costs
Software: Subscriptions and apps
Insurance: Business insurance
Training: Courses and certifications
Professional Fees: Accountant, legal
Office: Home office and admin costs
Marketing: Advertising, website, signage

Mileage Tracking

If you don't want to track every fuel receipt, you can claim mileage instead. Revenue's civil service rates (2026) are:

Up to 1,500 km: 37.95 cent per km
1,501 - 5,500 km: 70.00 cent per km
5,501 - 25,000 km: 27.55 cent per km
Over 25,000 km: 21.36 cent per km

You'll need a mileage log: date, destination, purpose, kilometres. Apps can track this automatically using GPS.

Record Keeping Requirements

Revenue requires you to keep records for 6 years. This includes:

All invoices (sales and purchases)
Receipts for expenses
Bank statements
Mileage logs
VAT records (if registered)

Digital records are acceptable — you don't need to keep paper. A photo of a receipt stored in the cloud counts.

Common Mistakes to Avoid

Not keeping receipts: "I bought it" isn't proof. Keep the receipt.
Mixing personal and business: That lunch wasn't a business meeting. Don't claim it.
Missing the small stuff: €5 here, €10 there — it adds up to hundreds over a year.
Forgetting cash purchases: Paid cash at the hardware shop? Still need to record it.
Leaving it until year-end: By then you've forgotten half of what you spent.

Tools That Help

TradeTime: Invoice and expense tracking built for Irish tradespeople
Xero: Full accounting with receipt capture
Dext (formerly ReceiptBank): Scan and categorise receipts automatically
Revolut Business: Business banking with built-in expense categorisation

Getting Started Today

You don't need a perfect system immediately. Start with these three steps:

Open a business bank account if you don't have one
Download an expense app and photograph today's receipts
Set a weekly reminder to review and categorise expenses

Even imperfect tracking beats no tracking. Start today, improve over time, and watch your tax bill shrink.

How to Track Expenses as a Self-Employed Tradesperson in Ireland