An individual sole trader is entitled to claim a tax deduction for any expenses wholly and exclusively laid out or expended for the purposes of his or her trade or profession. Whether or not an expense is wholly and exclusively incurred for the purposes of a trade is a test best interpreted with the assistance of case law. Revenue has recently published two Tax and Duty Manuals examining when travel and subsistence expenses pass this test, and are therefore tax deductible.
Manual Part 04-10-01 (PDF, 175KB) examines when travel expenses are allowable Case I / II deductions, while Manual Part 04-06-17 (PDF, 179KB) gives consideration to when food and subsistence payments are allowable deductions.
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