# Can I claim Professional Fees (Accountants, Solicitors) as a business expense in Ireland?

**Yes, fully claimable.** Yes, fees paid to accountants, solicitors, tax advisors and other professionals for the trade are deductible against Corporation Tax. Capital legal fees (e.g. share issue) are not deductible.

Typical amount: €800 to €3,000 per year for a small Ltd. Costs rise with payroll, VAT and a statutory audit.

## What Revenue (Revenue Commissioners) says

Professional fees incurred wholly and exclusively for the purposes of the trade are allowable. Fees relating to capital matters (raising share capital, acquiring a business) are capital and not deductible against trading profit. Fees are tested against the same rule as every other trading expense: the cost must be incurred wholly and exclusively for the trade and must be revenue in nature. Legal fees to defend or enforce a trading contract are usually allowable. Legal fees to acquire a lease or an asset are normally added to the asset cost.

## When you can claim

- Accountant fees for bookkeeping, payroll, tax compliance
- Solicitor fees for trading contracts and disputes
- Tax advisor fees for VAT and CT advice
- Auditor fees (for medium/large companies that lose audit exemption)
- Fees for the CRO annual return and company secretarial work
- Debt collection fees and legal fees to recover a trade debt

## When you cannot claim

- Legal fees for share issues or company formation (capital)
- Fees for personal tax returns of the director (unless director gives the company a benefit-in-kind)
- Fees relating to acquiring a fixed asset (capitalised instead)
- Fines, penalties and interest charged by Revenue, which are not wholly and exclusively for the trade
- The VAT on professional fees if the company is not VAT registered or the service is for an exempt activity

## Good to know

**Pro tip:** Ask the adviser to split each invoice between compliance work and capital items such as a share issue or an acquisition. The split is what Revenue checks, and an unsplit invoice may be disallowed in full.

**Important:** Fees for the CT1 and the company's bookkeeping are an ordinary trading expense. Fees for negotiating a share issue or buying a business are capital, so keep those invoices apart. The fee for filing the annual return at the CRO is also a business cost.

Source: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-06-12.pdf

## Related expenses

- [Software Subscriptions](https://accounts-os.com/ie/expenses/software-ireland)
- [Training & Professional Development](https://accounts-os.com/ie/expenses/training-ireland)
- [Pension Contributions (Director)](https://accounts-os.com/ie/expenses/pension-contributions-ireland)