If your business received the €4,000 Power Up grant earlier this year, you might have been under the impression, quite reasonably, that it was tax-free. After all, that’s how many presented it at the time, including government ministers.

However, Irish Revenue has now clarified that the grant is taxable.

Why the Change?

The key detail here is how the grant was intended to be used. Revenue has explained that because the €4,000 was aimed at covering running costs, rather than capital investment, it falls into the category of taxable income.

If your company received the grant, it must be included in your corporation tax return.

While the grant still provided some relief, the mixed messages around its tax status are frustrating, especially for businesses trying to plan with limited resources. Clarity is crucial when margins are tight and every euro counts.

What This Means for You

This update is likely to catch many small business owners off guard. The Power Up grant was widely promoted as a straightforward €4,000 cash boost, with no strings attached, just a bit of breathing room at a time when margins were already tight.

Understandably, most businesses wouldn’t have planned to account for it in their tax liabilities.

But with Revenue now confirming the grant is taxable, it’s essential to ensure it’s correctly included in your corporation tax return. If you’ve already spent the grant, speaking with your accountant to review your figures and avoid surprises is a good idea. And if your return is still pending, now’s the time to factor it in.

How We Can Help

If you need help understanding how this impacts your accounts or are unsure how to include the grant in your tax return, don’t hesitate to reach out. We’re here to help you make sense of it all—and to ensure there are no surprises come tax time.

Let’s keep the conversation going. If you have questions or concerns, just contact us—we’re always happy to discuss things.