# Tax On Bonus



## I{U}Ireland (14 Dec 2007)

Experts,

The Company pays me Bonus every 3 months on top of my Salary, and it is taxed by 41%, the boss told me that they can use it for things like Gym membership and it would not be taxed

I do not want Gym membership, so I am looking for other options to get the full bonus

Any Advice?

Regards


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## ClubMan (14 Dec 2007)

I{U}Ireland said:


> Experts,
> 
> The Company pays me Bonus every 3 months on top of my Salary, and it is taxed by 41%



They probably should be deducting _PRSI _and health contribution too.


> the boss told me that they can use it for things like Gym membership and it would not be taxed


I think that may only be if all employees are entitled to the same benefit/bonus?


> I do not want Gym membership, so I am looking for other options to get the full bonus
> 
> Any Advice?



See the _Revenue _guides to _BIK _for information on the few exemptions available.

[broken link removed]
[broken link removed]


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## FredBloggs (14 Dec 2007)

Surely a gym membership or something similar would be taxed as BIK?

AFAIK your company can give you an annual bonus of about €250 tax free

(Post crossed with Clubmans more detailed response - shouldn't go and get a cup of tea in the middle of a post!)


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## ClubMan (14 Dec 2007)

> *10.5 Sports and Recreational Facilities
> 
> *Facilities provided on the employer’s premises
> 
> ...


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## threeticks (14 Dec 2007)

FredBloggs said:


> Surely a gym membership or something similar would be taxed as BIK?
> 
> AFAIK your company can give you an annual bonus of about €250 tax free
> 
> (Post crossed with Clubmans more detailed response - shouldn't go and get a cup of tea in the middle of a post!)


 
Up to 250 tax free only applies if the bonus is in the form of a voucher.

Other than that its taxable income.


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## threeticks (14 Dec 2007)

I{U}Ireland said:


> Experts,
> 
> The Company pays me Bonus every 3 months on top of my Salary, and it is taxed by 41%, the boss told me that they can use it for things like Gym membership and it would not be taxed
> 
> ...


 
Get your company the give you a voucher for something you want.
ie. sports shop, clothes shop, golf shop, hotel etc......
The max tax free for a voucher is 250.
Now if you are getting a bonus 4 times a year I dont know how that would work.


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## threeticks (14 Dec 2007)

Pension contribution would come to mind assuming you have a pension.
If not why not use the bonus to start one.


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## ClubMan (14 Dec 2007)

threeticks said:


> Now if you are getting a bonus 4 times a year I dont know how that would work.


It won't - the small gift _BIK _exemption of €250 is an annual one so you would be liable for _BIK _tax/_PRSI_/health contribution on the other €750.

What about getting the bonus as a pension topup? _Update: this point crossed with threeticks!_


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## ClubMan (14 Dec 2007)

threeticks said:


> Up to 250 tax free only applies if the bonus is in the form of a voucher.


Or some other gift worth up to €250:


> *2.3 Small benefits
> 
> *Where an employer provides an employee with a small benefit
> [that is, a benefit with a value not exceeding €250 (€100 prior
> ...


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## threeticks (14 Dec 2007)

ClubMan said:


> It won't - the small gift _BIK _exemption of €250 is an annual one so you would be liable for _BIK _tax/_PRSI_/health contribution on the other €750.
> 
> What about getting the bonus as a pension topup? _Update: this point crossed with threeticks!_


SNAP


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## I{U}Ireland (2 Jan 2008)

guys;

Any one used http://www.one4all.ie/ Vouchers? 
I am thinking to send this link to my manager to use for my bounse

Any advice?


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## ClubMan (2 Jan 2008)

The annual €250 "small gift" tax exemption limit above applies to such vouchers too. Anything above that is assessable for _BIK _income tax and _PRSI _deductions via payroll.


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## I{U}Ireland (2 Jan 2008)

ClubMan said:


> The annual €250 "small gift"


 
Annual??

so I am only allowed for 250 free of Tax bounse per year???


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## ClubMan (2 Jan 2008)

Yes. Unless you get the bonus as a pension topup for example or one of the few other _BIK _exempt schemes. Have you not read the posts in this thread so far as they answer questions such as this.


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## Glenbhoy (2 Jan 2008)

You could get your employer to pay for your travel - if it's public transport you use, failing that, pension is the obvious and most efficient tax - break out there, it's twice as good a benefit as the SSIA was.


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## daddymacster (15 Dec 2010)

*3V Credit Card Acceptable under BIK?*

Hello,

I am wondering if 3V vouchers are acceptable for an employer to purchase under the BIK exemption scheme? I know One4All are ok but 3V can be more widely used.

Cheers.


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