Tax free voucher
“Small benefits relief” allows an employer to give each employee a single non-cash voucher or benefit in any tax year without having to apply PAYE, PRSI or USC.
Up until 21 October 2015 the maximum limit was €250; however, this has now been increased to €500 effective from 22 October 2015 as confirmed by the Minister for Finance in a press release dated 20 November 2015.
It is important to note that if the employer gives two vouchers worth €200 each, the value of the first voucher may be disregarded for tax purposes but the value of the second voucher has to be included as notional pay for PAYE/PRSI/USC purposes.
Where a benefit now exceeds €500 in value, the full value of the benefit will be subject to PAYE, PRSI and USC deductions.
If you require tax advice in relation to any matters, please contact a member of our professional Team on +353 74 912 2820 or email us at: firstname.lastname@example.org.
The information contained in this update may be subject to change and accordingly is not a substitute for professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional advisor. This firm shall not be responsible for any loss whatsoever sustained by any person who relies on this update.