# Tax-free  vouchers can be given by employers increased to €1,000



## Brendan Burgess

Small Benefit Exemption​The Small Benefit Exemption allows an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC.
I am increasing the annual limit provided for in the exemption from €500 to €1,000 and will also permit two vouchers to be granted by an employer in a single year under this exemption.
I propose that these changes will apply in the current tax year, so that additional benefits can be paid this year if an employer wishes to do so.


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## Black_Knight

2 500 vouchers per year, and available in 2022


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## T McGibney

Stupid move.

The country is already awash with unused (and increasingly unuseable) One4All vouchers.


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## Black_Knight

Allgo vouchers is where it's at. Basically a prepaid MasterCard. I always use mine, why wouldn't you!?


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## T McGibney

Black_Knight said:


> Allgo vouchers is where it's at. Basically a prepaid MasterCard. I always use mine, why wouldn't you!?


I'm not talking about myself. (I'm not even an employee.)


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## jim

its a great move, puts more money back in the working persons pocket - if they get the voucher! 

Of course there will be some that forget to use their voucher. Doesn't make it a stupid move though.


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## qwerty5

T McGibney said:


> Stupid move.
> 
> The country is already awash with unused (and increasingly unuseable) One4All vouchers.


I hate the One4All vouchers but they're easily used in Supervalue & Tesco so no excuse for not being able to use them. I use any I ever get in Tesco.


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## T McGibney

qwerty5 said:


> I hate the One4All vouchers but they're easily used in Supervalue & Tesco so no excuse for not being able to use them. I use any I ever get in Tesco.


Many people report issues in activating them.


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## luckystar

Me2you are much better than one4all


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## David1234

jim said:


> its a great move, puts more money back in the working persons pocket - if they get the voucher!
> 
> Of course there will be some that forget to use their voucher. Doesn't make it a stupid move though.


Disagree here. A lot of employers give out these vouchers in November/December as a bonus to help cover the cost of Christmas. It's a tax saving for the employer and employee. Retailers benefit from the additional spend also. I dislike One4All but thankfully there are numerous alternatives available now.


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## David1234

luckystar said:


> Me2you are much better than one4all


We gave these out last year to employees after converting over from One4All, an Irish based company that offer a better selection that were handy to deal with. Might do the same again in 2022 or potentially look at a Allgo or similar


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## T McGibney

David1234 said:


> Disagree here. A lot of employers give out these vouchers in November/December as a bonus to help cover the cost of Christmas. It's a tax saving for the employer and employee. Retailers benefit from the additional spend also. I dislike One4All but thankfully there are numerous alternatives available now.


It would be simpler and cleaner to allow employers give employees a tax-free ex-gratia lump sum of up to €1,000 per annum.


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## Sconeandjam

T McGibney said:


> Many people report issues in activating them.


One4all was sold last year and it was a disaster from a customer point of view. Bought for the staff. Arrived in January when ordered and paid for in late October. Issued them to staff and awful time getting them activated. Will question whether to use them this year or not.


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## Sconeandjam

T McGibney said:


> It would be simpler and cleaner to allow employers give employees a tax-free ex-gratia lump sum of up to €1,000 per annum.


Would be easier but someone not making money out of it if you go that route. 
Many companies that worked with One4all cancelled their contracts as they were charged higher commission. I tried to use one last year and a number of stores refused to accept them.


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## Sconeandjam

David1234 said:


> We gave these out last year to employees after converting over from One4All, an Irish based company that offer a better selection that were handy to deal with. Might do the same again in 2022 or potentially look at a Allgo or similar


Are me2you covered under this scheme or tax free vouchers or is it just One4All?


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## David1234

Sconeandjam said:


> Are me2you covered under this scheme or tax free vouchers or is it just One4All?


Yes Me2You also covered, there are a number of alternatives to One4All that I would use that are covered


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## David1234

T McGibney said:


> It would be simpler and cleaner to allow employers give employees a tax-free ex-gratia lump sum of up to €1,000 per annum.


Yes it would be easier and better for employees but I think the original objective of the incentive was to promote spending- Retailers are supported and in turn money goes back to the pot through taxes. Certainly not a perfect system but I am happy to see the amount increase


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## T McGibney

David1234 said:


> Yes it would be easier and better for employees but I think the original objective of the incentive was to promote spending- Retailers are supported and in turn money goes back to the pot through taxes. Certainly not a perfect system but I am happy to see the amount increase


I think you are correct. All the more odd to extend it in an inflationary environment.


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## luckystar

Sconeandjam said:


> Are me2you covered under this scheme or tax free vouchers or is it just One4All?


Me2you is covered as is any voucher like arnotts/Supervalu/Dunnes etc


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## Steven Barrett

T McGibney said:


> I think you are correct. All the more odd to* extend it in an inflationary environment.*


Also a cost of living crises. It's a good way of employers being able to give their employees an additional €500 tax free. Keep them for asking for a 10% pay rise...for a while...


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## T McGibney

Steven Barrett said:


> Also a cost of living crises. It's a good way of employers being able to give their employees an additional €500 tax free. Keep them for asking for a 10% pay rise...for a while...


My point is that it would be better to allow them give ex-gratia lump sums of the same value. No added incentive for shops and middlemen to jack up their prices in anticipation.


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## Brendan Burgess

Small Benefit Exemption​The Small Benefit Exemption allows an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC.
I am increasing the annual limit provided for in the exemption from €500 to €1,000 and will also permit two vouchers to be granted by an employer in a single year under this exemption.
I propose that these changes will apply in the current tax year, so that additional benefits can be paid this year if an employer wishes to do so.


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## Steven Barrett

Brendan Burgess said:


> Small Benefit Exemption​The Small Benefit Exemption allows an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC.
> I am increasing the annual limit provided for in the exemption from €500 to €1,000 and *will also permit two vouchers to be granted* by an employer in a single year under this exemption.
> I propose that these changes will apply in the current tax year, so that additional benefits can be paid this year if an employer wishes to do so.


Is that two vouchers of €1,000 or two vouchers to a total of €1,000?


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## imalwayshappy

Steven Barrett said:


> Is that two vouchers of €1,000 or two vouchers to a total of €1,000?


When I heard this in the budget I took it as 2 x €1000 vouchers.....


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## MugsGame

Annual limit of €1000 applied as one or two vouchers.


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## Firefly

According to revenue:

_You can give employees a small benefit of up to €500 in value, tax free, each year. This benefit must not be in cash. 

If more than one benefit is given in a year, only the first one qualifies for tax free status. Unused allowance amounts cannot be carried over.

Tax-free vouchers or benefits can be used only to purchase goods or services. They cannot be redeemed for cash._






						Small Benefit Exemption
					

This page explains the small benefit exemption provided to employees




					www.revenue.ie
				




This means (to me at least) that you could get a voucher for a particular shop rather than a One4All or similar. Would that be correct?


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## Brendan Burgess

Brendan Burgess said:


> I am increasing the annual limit provided for in the exemption from €500 to €1,000 and will also permit two vouchers to be granted by an employer in a single year under this exemption.



I had assumed that it was €1,000 

But the two vouchers is confusing.  Could an employer not give out 5 vouchers of €200 each?


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## Firefly

Brendan Burgess said:


> I had assumed that it was €1,000
> 
> But the two vouchers is confusing.  Could an employer not give out 5 vouchers of €200 each?


I would say no, it would be 2 vouchers totalling €1,000.


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## fidelcastro

T McGibney said:


> Stupid move.
> 
> The country is already awash with unused (and increasingly unuseable) One4All vouchers.


Dunnes Stores  better value beats them all


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## faketales

Always felt this is an unfair benefit. It's really just up to how willing your employer is to organise as to weather you get now up to about €500 extra tax savings. 

I can understand its origin. Employer giving a small gift or voucher at Christmas and tax not due.

But now it's just an efficient way of tax avoidance. But weather you get it or not is up to employer


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## ClubMan

Firefly said:


> This means (to me at least) that you could get a voucher for a particular shop rather than a One4All or similar. Would that be correct?


Yes. In a previous life I used to get €500 Dunnes Stores vouchers.


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## ClubMan

faketales said:


> Always felt this is an unfair benefit. It's really just up to how willing your employer is to organise as to weather you get now up to about €500 extra tax savings.
> 
> I can understand its origin. Employer giving a small gift or voucher at Christmas and tax not due.
> 
> But now it's just an efficient way of tax avoidance. But weather you get it or not is up to employer


I don't think that the weather has any bearing on this scheme. But you seem to be saying that it's unfair because some employers will give it and others won't? Similar to how some employers offer better pay and/or conditions than others? Do you think that employers should be obliged to give everybody €1k (or 2 x €500) vouchers to every employee?


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## faketales

ClubMan said:


> I don't think that the weather has any bearing on this scheme. But you seem to be saying that it's unfair because some employers will give it and others won't? Similar to how some employers offer better pay and/or conditions than others? Do you think that employers should be obliged to give everybody €1k (or 2 x €500) vouchers to every employee?



It's a government scheme that allows an employer to reduce tax for an employee. It's not that I want an extra €1k just should have the option of taking 1k of my salary tax free.


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## NoRegretsCoyote

This scheme is many things:

A way to be able to incentivise staff with bonuses that don't get chopped in half by tax
Even if they were tax free workers still feel that a €1,000 voucher in the hand is more than €1,000 in the bank account so you get happier staff for the same spend if you are an employer
A way to stimulate the domestic retail sector (vouchers can't be saved like cash can)
A way to support retailers and vouchers industry (the dirty secret is that a large minority of vouchers by value are never, ever cashed in)


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## flyingfolly

A lot of people don't realise that a preloaded Mastercard is also an option here. We use https://www.allgo.ie and my wife and I get a 500 euro card each every year from our own company


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## ClubMan

flyingfolly said:


> A lot of people don't realise that a preloaded Mastercard is also an option here. We use https://www.allgo.ie and my wife and I get a 500 euro card each every year from our own company


I used to get a Perx card and, to be honest, it was more hassle than it was worth. I think I donated it to charity a couple of times because I found the whole thing too confusing. Maybe they're easier to use these days...


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## flyingfolly

ClubMan said:


> I used to get a Perx card and, to be honest, it was more hassle than it was worth. I think I donated it to charity a couple of times because I found the whole thing too confusing. Maybe they're easier to use these days...


Its a lot easier. We just buy 2 preloaded Mastercards from Allgo (pay via bank transfer) and you're set. They're mastercards so you can buy anything with them.


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## Blackrock1

ClubMan said:


> I used to get a Perx card and, to be honest, it was more hassle than it was worth. I think I donated it to charity a couple of times because I found the whole thing too confusing. Maybe they're easier to use these days...


a perx is a prepaid credit card, we gave them out for years, what was confusing about them?


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## faketales

NoRegretsCoyote said:


> This scheme is many things:
> 
> A way to be able to incentivise staff with bonuses that don't get chopped in half by tax
> Even if they were tax free workers still feel that a €1,000 voucher in the hand is more than €1,000 in the bank account so you get happier staff for the same spend if you are an employer
> A way to stimulate the domestic retail sector (vouchers can't be saved like cash can)
> A way to support retailers and vouchers industry (the dirty secret is that a large minority of vouchers by value are never, ever cashed in)



1. That's just the ability to pay tax free. Except opposed to it being available across the board it depends on your employer if you get the tax exemption. 

2. Not sure on that. 

3. Fair enough.

4. Who really wins here? Most vouchers are for one4all or a best a big retailer.

I feel similar about the bike2work scheme. It's a tax benefits but requires your employer to sign up as opposed to managing at tax return turn etc.


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## lff12

qwerty5 said:


> I hate the One4All vouchers but they're easily used in Supervalue & Tesco so no excuse for not being able to use them. I use any I ever get in Tesco.


Also Woodies, B&Q, handy for househouse stuff and even a gas cylinder refill


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## Sconeandjam

Seen and advertisement from Tesco promoting their vouchers. You need to contact corporate sales team from what I hear to purchase the cards.


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## dubdub123

you msy be able to use the one 4 all cards (or similar)  to purchase other gift cards.

I used one (Perx or something) that was about to expire to purchase an elverys gift card


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## odyssey06

I feel like Bob Cratchit here hoping my employer, sitting on piles of cash, will dole out €1000 this christmas instead of the usual €100 ...


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## peemac

luckystar said:


> Me2you are much better than one4all


And can be used in Applegreen for fuel


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## Kilkenny Lass

Just to clarify is it possible to take a salary reduction of €1000 and then get two tax free vouchers. I never get a bonus but presume the above is against the scheme rules. Thanks


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## MugsGame

Salary sacrifice is against the scheme rules. Just as you can't sacrifice salary for an employer pension contribution.


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## 8till8

*Swirl Gift Card*  -- this is a prepaid mastercard

Card value €10 to €500
Monthly fee; after 12 months €3.50 per month
Can be topped up - Top up fee either €2.99 or €3.99

*Me2You gift card*  -- this is a gift card so retailer must be signed up to accept

Can only be loaded once, min €15 and max €150. Corporate cards max €500
Physical card expires after 24 months (can be replaced by contacting them)
Buried in the terms and conditions;
card issue fee €2
card replacement fee €5
monthly fee; after 12 months €1.40 per month



*One4all*  -- this is a gift card so retailer must be signed up to accept

Can only be loaded once, standard card limit €150, chip & pin €150 to €500 and require ID to activate
Issue fee €2 per card
Card valid for 5 years
Monthly fee after 12 months €1.45 per month

*Allgo*   -- prepaid mastercard

Choice of physical or digital card - physical card is single load
Charge fee €5 upto €2,000
Delivery per physical card €3
Monthly fee after 12 months €3 per month

*Perx **reward card * -- prepaid mastercard

Physical card is single load
Buried in the terms & conditions;
Upfront cost of single load card €5
Monthly fee after 12 months €3 per month


AllGifts.ie  -- appears to be a voucher system where retailer must be signed up to accept




Are there more card options out there?


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## ClubMan

8till8 said:


> Are there more card options out there?


Perx?





						Home | Perx Rewards
					

Perx Rewards is the perfect corporate gift card as it provides freedom to be spent worldwide or online. Order now to avail of government tax-free schemes.




					perxreward.com
				



AllGifts?


			- AllGifts.ie


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## fitz

Lidl offer 2% discount on their gift cards:


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## Audi_Driver

Any one know if a sole trader can use this exemption for him/herself ?


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## Sconeandjam

Sconeandjam said:


> Seen and advertisement from Tesco promoting their vouchers. You need to contact corporate sales team from what I hear to purchase the cards.


Contacted Tesco. You register with their corporate site www.tescoforbusiness.com.
Enter reg details and vat if you are registered. They will check your details and let you know within 24/48 hours or so if accepted.
 I rang to check. You need to ring if the total order is under the €1000 as there will be a block on the order. Easy to sign up.
Note if you are ordering under €1000 you can order a digital card. Once you pay they email the details to your email and you can forward a copy to your staff or print it off. You pay postage if buying amount is under the €1000. Will let you know how I get on.
The max that can be put on the card is €500.00. This applies to digital as well as physical cards.


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## Sconeandjam

Audi_Driver said:


> Any one know if a sole trader can use this exemption for him/herself ?


One 4 all employee said to me you can but you would be better to speak to your accountant or check with Revenue directly.


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## Delboy

IMO, many Employers using these vouchers in lieu of pensionable pay rises to some degree. Not a good direction to be going in and no surprise the Govt recently increased the tax free limit to €1k. Unions silent as usual


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## Groucho

Delboy said:


> IMO, many Employers using these vouchers in lieu of pensionable pay rises to some degree. Not a good direction to be going in and no surprise the Govt recently increased the tax free limit to €1k. Unions silent as usual



Tabloid media outraged - as usual!  









						Cash-strapped RTE planning to spend €1.5m on gift vouchers for employees
					

The national broadcaster is currently engaged in a massive cost-cutting plan




					www.irishmirror.ie


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## T McGibney

Audi_Driver said:


> Any one know if a sole trader can use this exemption for him/herself ?


No. 


Sconeandjam said:


> One 4 all employee said to me you can


Never ask your barber if you need a haircut.



Sconeandjam said:


> but you would be better to speak to your accountant or check with Revenue directly.


Agreed.


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## Purple

T McGibney said:


> Never ask your barber if you need a haircut.


I'm going to rob that line.


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## Sconeandjam

Sconeandjam said:


> Contacted Tesco. You register with their corporate site www.tescoforbusiness.com.
> Enter reg details and vat if you are registered. They will check your details and let you know within 24/48 hours or so if accepted.
> I rang to check. You need to ring if the total order is under the €1000 as there will be a block on the order. Easy to sign up.
> Note if you are ordering under €1000 you can order a digital card. Once you pay they email the details to your email and you can forward a copy to your staff or print it off. You pay postage if buying amount is under the €1000. Will let you know how I get on.
> The max that can be put on the card is €500.00. This applies to digital as well as physical cards.


Update. Managed to set up an account. Tried to do a digital card to find you can only buy up to €300!! 
As mentioned before Revenue said you can only get 2 vouchers each for the maximum of €500 to apply for the small gift exception. If you buy 3 for the value of €1000 then you will be taxed for the full amount.  So the digital card for the value of €300 card will not work.

If you want a physical card then you have to pay €15 postage if your total order is under €1000 and due to the order cut off of last week you may not get them delivered this side of Christmas! I think they are based in England. 

Heres the thing if you remember the saga last year in regards to One4all cards well who is managing the Tesco vouchers? Same company that bought One4All cards. The guy I was talking too said they manage the cards for One4all.


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## Sconeandjam

T McGibney said:


> No.
> 
> Never ask your barber if you need a haircut.
> 
> 
> Agreed.


Your good!!


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## mct1

Can a limited company give its director who is also its sole PAYE employee these vouchers tax free? Eg Joe Bloggs Ltd gives vouchers to Joe Bloggs.

Can they be digital rather than physical cards?

And if they are purchased before 31 December - but in the case of physical cards dont arrive before 31 - is that allowed?


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## T McGibney

mct1 said:


> Can a limited company give its director who is also its sole PAYE employee these vouchers tax free? Eg Joe Bloggs Ltd gives vouchers to Joe Bloggs.


Yes


mct1 said:


> Can they be digital rather than physical cards?


No idea


mct1 said:


> And if they are purchased before 31 December - but in the case of physical cards dont arrive before 31 - is that allowed?


What difference does it make it they don't? Who's going to know?


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## mct1

T McGibney said:


> Yes


Thanks. I'll reassure the company director!

I can find nothing that says vouchers must be physical, so digital it is. And yes, good point - who would know when they arrive, provided they're paid for by 31 Dec. We've left it late - Perx have closed for corporate now and and Allgo say earliest they can do is January. I'll keep looking...


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## redstar

One4All have changed their inactivity charge to kick in after 18 months instead of 12 months, for cards purchased after Nov 1 2022.

"One4all Gift Cards purchased from 1st November 2022 can now be spent free of charges for 18 months. After this time, a monthly charge of €1.45 will be deducted from funds remaining on the card, until the card balance reaches zero.

Please note, One4all Gift Cards purchased prior to 1st November 2022 are still subject to a monthly deduction of €1.45 per month after 12 months."






						What is an inactivity fee? - One4all
					

The 'Valid Thru' on the front of your card relates to longevity of the plastic of the card and is for use when purchasing online. This is not an expiry date.




					faqs.one4all.ie


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