17/12/2025
9 Smart Tax Moves to Make Before 31 December 2025 (Ireland)
Year end planning can save you thousands — don’t leave it until January.
As we approach the end of 2025, now is the perfect time to review your finances and make sure you’re not paying more tax than necessary. Many of the most valuable tax-saving opportunities expire on 31 December, so acting early matters.
Here are 9 practical steps every business owner and professional in Ireland should consider before year end.
1️⃣ Review Your Company Profits Before Year-End
If you run a company, holding large profits inside the business can trigger extra taxes later — including the Close Company Surcharge on undistributed income.
Example:
Leaving €70,000 sitting idle for too long can push your effective tax rate from 12.5% to nearly 30%.
Before year end, consider:
✔️ Salary or bonus adjustments
✔️ Using available tax credits
✔️ Employer pension contributions
✔️ Small Benefit Exemption
✔️ Subsistence & mileage allowances
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2️⃣ Use Your €1,500 Small Benefit Exemption
Every employee — including directors — can receive up to €1,500 tax free each year through vouchers or prepaid cards.
A normal €1,500 bonus can cost almost €900 extra in tax and PRSI.
Using SBE costs as little as €30–€40 in card fees.
A simple, legal, tax efficient win.
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3️⃣ Maximise Pension Contributions
Pensions remain one of the most powerful tax-saving tools in Ireland.
• Employees can make AVCs
• Business owners can make company-funded contributions
• Younger owners may benefit from PRSAs
• Older owners may benefit from Executive Pensions
Every €100 contributed can cost as little as €60 after tax relief.
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4️⃣ Claim Subsistence & Mileage Allowances
If you travel for work, you may be entitled to:
• Mileage rates up to 90c per km
• Daily subsistence up to €46.17
• Overnight allowances up to €205.53
These are unvouched allowances — no receipts needed, just a work log.
Many employees and directors miss out on thousands every year.
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5️⃣ Review Capital Gains Before 15 December
Capital Gains Tax has strict deadlines:
• Gains made Jan–Nov → tax due 15 December
• Gains made in December → tax due 31 January
You can also:
✔️ Use your €1,270 annual CGT exemption
✔️ “Harvest” losses to offset future gains
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6️⃣ Consider EIIS Investments (Up to 50% Tax Relief)
The Employment Investment Incentive Scheme allows you to invest in qualifying Irish businesses and receive up to 50% tax relief.
Higher risk, but extremely tax efficient when used correctly.
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7️⃣ Review Your Salary Strategy
For business owners, increasing salary before year end can:
• Increase pension contribution limits
• Improve EIIS eligibility
• Strengthen long term retirement planning
Sometimes paying a little more tax now unlocks much larger tax free benefits later.
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8️⃣ Don’t Forget the 4 Year Tax Rebate Rule — Claim 2022 Before It’s Too Late
Revenue allows PAYE taxpayers to claim refunds for the previous 4 tax years.
That means:
👉 2022 refunds expire on 31 December 2026
If you haven’t claimed medical expenses, rent credit, tuition fees, flat rate expenses, or dependent relative credits for 2022, now is the time to review.
Many people lose hundreds — sometimes thousands — simply because they miss the deadline.
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9️⃣ Plan Ahead — Don’t Wait Until January
Revenue reports that Irish taxpayers underclaim more than €400 million in tax reliefs every year.
The tools exist — but they only work if used before the deadline.
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Need help planning your year-end tax strategy?
DublinLedgers can guide you through every step — from allowances to pensions to company planning — so you keep more of what you earn.
📧 [email protected]
📞 +353 89 210 9116
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Effortless payroll, bookkeeping, tax solutions for small businesses and self-employed in Ireland. Claim tax rebates, maximize your financial success.
