# Small benefit exemption options



## arikv (22 Mar 2016)

Hi all,

We would like to gift our employees the allowed 500Euro this year.
The best thing for us would be a prepaid Debit card, but I cannot find any the states that it is approved by Revenue for the scheme.

I'm aware of none4all and fromyou2me vouchers (or whatever they're called) but both are more hassle than a gift (unless you're buying a big TV or something similiar).

I also came across a prepaid mastercard called Perfectcard, but on their website it states up to 250Euro which sounds like they didn't bother with revenues new rates.

Any advice/link would be appreciated.


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## newtothis (22 Mar 2016)

I assume you meant to say One4All rather than none4all? We gave these out. Very widely accepted, and as easy to use as any credit/debit card. Lower cost too than any prepaid debit card, as far as I know.


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## Gordon Gekko (22 Mar 2016)

As far as I know, there's no Revenue approval as such.

If an employer gives an employee a tv worth €499 as a gift, it's exempt. If an employer gives an employee a tv worth €501 as a gift, it's fully taxable.

The same goes for a One4All voucher. Employers just happen to give One4All vouchers.


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## arikv (23 Mar 2016)

Thanks, but I'm not keen on any vouchers that limits people to Woodies and such. Groceries are essential and would rather get a card that I can use in Tesco, Lidl and such.

I'm looking for some prepaid debit card, I might go with prepaid mastercard if none exists.


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## Jon Snow (23 Mar 2016)

arikv said:


> Thanks, but I'm not keen on any vouchers that limits people to Woodies and such. Groceries are essential and would rather get a card that I can use in Tesco, Lidl and such.
> 
> I'm looking for some prepaid debit card, I might go with prepaid mastercard if none exists.



Don't!!

A prepaid credit / debit card is not a voucher, it is equivalent to cash (ie you can withdraw cash from an ATM with it). It won't qualify. 

Just ask the employees what / where they want a voucher for and they should be delighted to be getting it.


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## arikv (23 Mar 2016)

Are you sure it doesn't qualify for Small benefit exemption?
According to this: [broken link removed] it does (I've confirm by email).
Also, I don't see any difference between this one and one4all card from Revenue point of view, as both are prepaid cards, the first is powered by Mastercard and is more widely used (all over the world) and not just some DIY/specialized shops.


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## newtothis (23 Mar 2016)

arikv said:


> Thanks, but I'm not keen on any vouchers that limits people to Woodies and such. Groceries are essential and would rather get a card that I can use in Tesco, Lidl and such.



As I said, One4All are very widely accepted, including places like Marks & Spencer and at least some SuperValu. All major department stores too (Arnotts, Brown Thomas, Debenhams etc.). I know years ago such things were far more limited and I'd have agreed then with the concern "I wouldn't shop in any of those places by choice, so I'd never get to use it", but I really don't think that applies anymore. See https://www.one4all.ie/retailer.html


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## Leo (23 Mar 2016)

arikv said:


> Are you sure it doesn't qualify for Small benefit exemption?
> According to this: [broken link removed] it does (I've confirm by email).
> Also, I don't see any difference between this one and one4all card from Revenue point of view, as both are prepaid cards, the first is powered by Mastercard and is more widely used (all over the world) and not just some DIY/specialized shops.



Beware of the admin fees and stamp duty involved with a lot of those pre-paid cards.


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## Jon Snow (23 Mar 2016)

arikv said:


> Are you sure it doesn't qualify for Small benefit exemption?
> According to this: [broken link removed] it does (I've confirm by email).
> Also, I don't see any difference between this one and one4all card from Revenue point of view, as both are prepaid cards, the first is powered by Mastercard and is more widely used (all over the world) and not just some DIY/specialized shops.



Well, if it can be exchanged in part or in full for cash then it doesn't qualify according to this: http://www.finance.gov.ie/news-centre/press-releases/minister-finance-–-update-finance-bill-2015-small-benefits-exemption).

As I understand it from the link you've provided, there's no indication that you can go to an ATM and draw down cash from the balance on the card, so it may be acceptable to Revenue.

However, also from the website you linked, it says that when the card expires if there is a balance of funds on it you can write to them and they will send you a cheque for the balance (minus €10 admin fee). This would appear to make it exchangeable for cash, which would disqualify it.

Really, you have 2 choices - use a Voucher, which is widely accepted as qualifying, or if you really don't think your staff will be delighted with a €500 One4All voucher or similar, contact Revenue and ask for confirmation in writing that the method you propose to use qualifies for the exemption.


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## staff (23 Mar 2016)

I have been getting One4All cards as Christmas bonuses for the last 7/8 years and while I may not shop in those shops under normal circumstances, I find that it makes me go out and buy myself something different or a treat if you like.  Also, stores like Arnotts or Debenhams which do take them also have various other shops/brands in their stores and they can be used in all of them also (the only one you can't use them in is Zara) but there are plenty of other options.


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## arikv (23 Mar 2016)

Thanks,
Good idea about getting revenue to confirm in writing, unlikely it'll happen but I like the idea.

Also, I know that employees would like to use this in tesco/Lidl for weekly shopping.
Pity they don'e accept them.


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## Jon Snow (23 Mar 2016)

arikv said:


> Thanks,
> Good idea about getting revenue to confirm in writing, unlikely it'll happen but I like the idea.
> 
> Also, I know that employees would like to use this in tesco/Lidl for weekly shopping.
> Pity they don'e accept them.



If you ask Revenue to confirm whether X qualifies for the relief, they are obliged to respond.


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## arikv (23 Mar 2016)

Cheers,
I've just sent them an email.


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## Nutso (24 Mar 2016)

Interested in the response on this.  I contact PerfectCard last year and they said that it did qualify for the SBE as long as it was €500 or under.


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## arikv (24 Mar 2016)

I got the same confirmation from Perfectcard, but I agreed with Jon Snow that I will need Revenue to confirm too before I pull the trigger.
I might ring the paye employer helpdesk next week if they don't respond to me email.


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## Sophrosyne (24 Mar 2016)

arikv,

I think Jon Snow is correct.

This is the text from the Act:

*112B.*(1) In this section—

  ‘benefit’ means a tangible asset other than cash;

  ‘qualifying incentive’ means either a voucher or a benefit that is given to an employee by his or her employer in a year of assessment where the following conditions are satisfied:

  (a) the voucher or the benefit does not form part of a salary sacrifice arrangement;

*  (b) the voucher can only be used to purchase goods or services and cannot be redeemed, in full or in part, for cash;*

  (c) the voucher or the benefit cannot exceed €500 in value;

  (d) not more than one voucher or benefit can be given to that employee in any year of assessment;

  ‘salary sacrifice arrangement’ means any arrangement under which an employee forgoes the right to receive any part of his or her remuneration due under his or her terms or contract of employment and in return his or her employer agrees to provide him or her with a qualifying incentive.

  (2) A qualifying incentive shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.”.


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## Gordon Gekko (24 Mar 2016)

So there's no approval required (as I said days ago). It can be a tv, a voucher, anything...just not cash.

One4All just happen to have the market cornered. A tennis racket or a tv would qualify...a voucher for anywhere. No need for Revenue approval.

Revenue would probably tell you that it has to be a One4All voucher. I once had a Revenue staff member tell me that it was illegal to pay staff in cash (and no, not "under the table"...in physical cash).


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## Jon Snow (25 Mar 2016)

Gordon Gekko said:


> So there's no approval required (as I said days ago). It can be a tv, a voucher, anything...just not cash.
> 
> One4All just happen to have the market cornered. A tennis racket or a tv would qualify...a voucher for anywhere. No need for Revenue approval.
> 
> Revenue would probably tell you that it has to be a One4All voucher. I once had a Revenue staff member tell me that it was illegal to pay staff in cash (and no, not "under the table"...in physical cash).



Ah Gordon, c'mon now, I'd expect better of you. 

For every tale such as yours, I could tell you a crazy thing that a qualified accountant (earning much more than a Clerical Officer in the civil service) has tried to tell me. 

What would your story or mine prove except that you can come across a person asleep at the wheel in any job on any given day. 

OP has nothing to lose here - if Revenue tell him in writing that he can buy that product under the exemption scheme then he can do so, until they tell him not to. 

If they tell him something crazy, he can ignore it and go and do what he already knows is correct.


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## Sophrosyne (25 Mar 2016)

arikv said:


> I got the same confirmation from Perfectcard, but I agreed with Jon Snow that I will need Revenue to confirm too before I pull the trigger.
> I might ring the paye employer helpdesk next week if they don't respond to me email.



You might also seek _written _confirmation from _*Perfect Card*_ that their vouchers cannot be redeemed, in full or in part for cash.

Then you will have your answer.


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## Gordon Gekko (25 Mar 2016)

Sophrosyne said:


> You might also seek _written _confirmation from _*Perfect Card*_ that their vouchers cannot be redeemed, in full or in part for cash.
> 
> Then you will have your answer.



Exactly. That's the key test. And with those prepaid debit/credit cards, can one withdraw from an ATM (I suspect not) or get cashback?

I agree with you Jon Snow, with the caveat that in my experience it's often best to avoid Revenue and plough one's own furrow.


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## Leo (25 Mar 2016)

Sophrosyne said:


> You might also seek _written _confirmation from _*Perfect Card*_ that their vouchers cannot be redeemed, in full or in part for cash.
> 
> Then you will have your answer.



Just to add, ask them to indemnify you against any related charges in the event Revenue don't approve. They're in the business of selling these cards, never take the word of anyone trying to sell you anything.


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## Joe_90 (25 Mar 2016)

Leo said:


> Just to add, ask them to indemnify you against any related charges in the event Revenue don't approve. They're in the business of selling these cards, never take the word of anyone trying to sell you anything.



Agree 100%.


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## mc-BigE (24 Oct 2016)

Can i get amazon Gift Card, does it have to be a physical card or can it be electronic? , does it have to be Irish based or can i get one say in the UK? 

also is there such a thing as Paypal gift voucher, or better still could i use a prepay mastercard , like perfectcard through Paypal?


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## newirishman (24 Oct 2016)

mc-BigE said:


> Can i get amazon Gift Card, does it have to be a physical card or can it be electronic? , does it have to be Irish based or can i get one say in the UK?
> 
> also is there such a thing as Paypal gift voucher, or better still could i use a prepay mastercard , like perfectcard through Paypal?



We use the pre-paid Mastercard (perfectcard.ie if I recall correctly) for that purpose in the company. Works very well, and as it is a "proper" mastercard it is pretty much usable anywhere. Much more flexible than any brand-specific gift vouchers.


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## Firefly (24 Oct 2016)

In the case of a small company with 2 directors, does anyone know if 2 x 500 non-cash benefits are allowable, or is this benefit only for "employees" ?


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## mc-BigE (24 Oct 2016)

Firefly, Directors and Employees and Company secretaries are allowed the 500 non-cash benefit.

Newirishman: can you use the perfectcard in an ATM machine? they mention about fees if you use it in an ATM machine in their T&Cs
however they also say there is no PIN number, so not sure how to get money out if theres no PIN.

Also, can you use the perfectcard online?


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## newirishman (24 Oct 2016)

mc-BigE said:


> Firefly, Directors and Employees and Company secretaries are allowed the 500 non-cash benefit.
> 
> Newirishman: can you use the perfectcard in an ATM machine? they mention about fees if you use it in an ATM machine in their T&Cs
> however they also say there is no PIN number, so not sure how to get money out if theres no PIN.
> ...



don't know about ATM machines, but kinda defeats the purpose - and I wouldn't be surprised if there's a significant charge. The perfectcard is essentially a pre-paid mastercard, so again when you can use a mastercard, you can use the perfectcard.


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## Firefly (24 Oct 2016)

mc-BigE said:


> Firefly, Directors and Employees and Company secretaries are allowed the 500 non-cash benefit.



Thanks, just off the phone from my golf club....if I buy 2 x 500 euro vouchers in Dec I can use them off the sub in Jan. That's a net saving of about 500 euro!


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## mc-BigE (24 Oct 2016)

newirishman said:


> don't know about ATM machines, but kinda defeats the purpose - and I wouldn't be surprised if there's a significant charge. The perfectcard is essentially a pre-paid mastercard, so again when you can use a mastercard, you can use the perfectcard.



Thanks for that, using it online is what i really want to do , not ATM, but if they have an option of using it in an ATM machine, then that wouldn't qualify for tax free gift, Which is why i asked.


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## mc-BigE (14 Nov 2016)

quick question? do i have to buy vouchers/ gift card from an Irish registered company? or can i buy from say a UK company like amazon.co.uk or one4all.co.uk instead of the irish version.

obviously to the value of 500 euro , converted to sterling or dollars etc.


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