If you run your own limited company, you probably spend your year juggling clients, projects, payroll, VAT deadlines, the occasional Revenue brown envelope and that one supplier who still hasn’t sent their invoice.
But when year-end approaches?
There’s one question that gives every director a knot in the stomach:
“Did I leave money on the table?”
Because the truth is, most directors do.
Not because they’re careless but because there’s no flashing warning light on the dashboard that says:
STOP!
MAKE YOUR PENSION CONTRIBUTION.
Or:
REMEMBER THOSE ACCRUALS.
Or:
CLAIM YOUR PRE-TRADING EXPENSES.
So, let’s fix that once and for all.
The pension contribution (The Director’s tax superpower)
If you only remember one thing at year-end: remember your pension.
It is still the single most effective tax planning tool available to company directors in Ireland.
Why it matters:
Your company can make a lump-sum pension contribution before year-end and get a full corporation tax deduction for it, reducing your taxable profit.
No BIK.
No PRSI.
No income tax.
Just straight tax relief.
And the best part?
Unlike personal pension contributions (which are capped by age-related limits), employer pension contributions are based on the company’s ability to fund, meaning you can shelter far more profit than you think, if structured correctly.
Rule of thumb: If your company has strong profits, fund your pension BEFORE the accounts are closed.
If you wait until after year-end, you may miss the window for relief.
Accruals: The quiet expenses that save real money
Expenses don’t magically disappear just because the invoice hasn’t arrived yet.
If you:
- Owe your accountant fees
- Have marketing projects underway
- Expect professional fees
- Have unpaid utilities or stock costs
You can accrue these at year-end.
Why it matters:
Accruals reduce your taxable profit now, not next year.
For directors who want to avoid:
- Surprising corporation tax bills, or
- Artificially inflated year-end profits
Accruing expenses ensures your accounts reflect reality, not just what has physically landed in your inbox.
Pre-trading expenses: The ones everyone forgets completely
Started trading this year?
Did you spend money before your company officially started earning?
Think:
- Website design
- Branding
- Licensing
- Tools, software, equipment
- Legal / professional advice
- Market testing
- Training relevant to the business
Those aren’t sunk personal costs, they are pre-trading expenses.
Tax treatment:
You can claim them when your business begins trading, as if they were incurred on day one.
Most directors never go back and gather them and it’s effectively free tax relief left behind.
If you don’t review your pre-trading expenses, you’re paying tax on money you didn’t need to.
The year-end checklist every director should pin to their desk
Before your accountant drafts your final accounts, ask:
| Item | Question | Outcome |
|---|---|---|
| Pension Contribution | Should we make an employer contribution before year-end to reduce profits? | Potential large tax saving & wealth building |
| Accruals | Are there costs we know exist, but haven’t been invoiced yet? | Profit reflects reality lower corporation tax |
| Pre-Trading Expenses | Did we spend anything getting the business off the ground? | Claim expenses you already paid for |
One last thought
Year-end shouldn’t be about reacting to the numbers.
It should be about shaping them, intentionally.
A good accountant will ask these questions.
A great accountant doesn’t wait for year-end at all, they plan before it hits.
If you’re reading this thinking:
“I have definitely missed at least one of these…”
You’re not alone, but you don’t need to keep leaving money on the table.
