Wishing you a very Merry Christmas!
Merry Christmas to our new clients and contacts that I have had the pleasure of meeting since starting my new accountancy and tax business in Waterford this year. I wish you all the best for 2026 and am here to offer any assistance I can. As we head into 2026 here are a few items for all sme’s and business owners to keep in mind.
- Avail of all reliefs and incentives, ensuring compliance with new 2025/2026 legislation and maintain proper financial records. Tax planning is essential to manage your cash flow and avoid penalties.
- Utilise Employment Incentives – such as the Small Benefit Exemption Scheme allows employers to give employees a non-cash, tax-free bonus of up to €1,500 annually (increased from €1,000 in 2025), which can be split into up to five payments.
- Manage Preliminary Tax: Plan and manage your preliminary tax payments well in advance of deadlines to avoid interest and penalties. Small companies can base their preliminary tax on 100% of the previous year’s liability or 90% of the current year’s estimated liability.
- Consider Business Structure: Review your business structure (sole trader vs. limited company) with a professional, as incorporating may offer tax advantages, such as the 12.5% corporation tax rate on trading profits. New start-up companies may also qualify for relief from corporation tax in their first number of years.
- Stay Compliant with Deadlines and Legislation: Be aware of key dates for filing returns and making payments.
- Increases to the National Minimum Wage
- Changes to VAT rates and registration thresholds – for example vat on food and catering businesses being reduced on July 1st 2026
- The introduction of the pension auto-enrolment scheme for eligible employees from January 01, 2026.
- Explore schemes like the Employment and Investment Incentive (EII) and Start Up Refunds for Entrepreneurs (SURE) to attract investment and potentially reclaim income tax paid in previous years.
- Maintain separate personal and business bank accounts to simplify record-keeping and tax filing.
- Use accounting software to streamline processes, improve accuracy, and ensure all records are readily available for an audit.
- Consult with a qualified accountant or tax advisor specialising in Irish tax laws to navigate complexities, ensure compliance, and maximize available reliefs. More details can be found on the Revenue and Citizens Information websites.