Can I claim payments to subcontractors as a business expense in Ireland?

Yes — payments to subcontractors and freelancers for work integral to your business are fully allowable as a business expense in Ireland. For example: a web developer who hires a designer for a project, a plumber subcontracting specialist work, or a consultant bringing in external expertise — all can deduct these costs. Relevant Contracts Tax (RCT): if you operate in the construction, forestry, or meat processing sectors, RCT rules apply. You must register as a principal contractor and withhold RCT at 0%, 20%, or 35% from subcontractor payments, depending on their registration status with Revenue. For all other sectors: simply retain invoices from subcontractors and claim under 'Cost of sales' or 'Subcontractors' on Form 11. Ensure subcontractors are genuinely self-employed — if Revenue deems them employees, PAYE obligations arise.

• Subcontractor and freelancer payments are fully deductible when related to your business
• Construction, forestry, meat processing: RCT rules apply — withhold at 0%, 20%, or 35%
• Other sectors: retain invoices and claim under 'Cost of sales' on Form 11
• Ensure subcontractors are genuinely self-employed, not employees
• Get written invoices from all subcontractors before paying