Do ESB staff pay BIk for their discount of 25% on their ESB Bills

[dodo]

Just wondering do the workers of ESB who receive 25% off their ESB bills do they pay benefit in kind for this privilege.

 

[Clarkey]

Just wondering do the workers of ESB who receive 25% off their ESB bills do they pay benefit in kind for this privilege.

Unless it is supplied at less than cost price there is no benefit in kind

From Revenue:

What is the position in relation to staff discounts?
This is best illustrated by example.

An employer buys goods costing €80 each.
If he allows staff to buy the goods at cost (€80), there is no taxable benefit.
If he allows staff to buy at €50 each, then the taxable benefit is €30 and this must be included as notional pay.

 

[mathepac]

On that sample basis above, the 25% of the bill being supplied at zero cost to the employee, but costing the employer money, must be taxable.

 

[Clarkey]

On that sample basis above, the 25% of the bill being supplied at zero cost to the employee, but costing the employer money, must be taxable.

No, if the electricity is costing ESB less than 75% of what it is being retailed for then there is no B.I.K.

 

[Clarkey]

Quoted here as 55% but spokesperson claims they are fully tax compliant

http://www.independent.ie/incoming/...ount-on-their-electricity-bills-29771196.html

 

[ashambles]

A profit margin of 55% would raise eyebrows in the electricity distribution and generating world. ESB are expensive but surely they're not running the sort of massive electricity price gouging a 55% margin would imply.

I note the ESB say it's part of the terms and conditions not that it can be justified via profit margins.

I'd say the chances of Revenue allowing a normal company run a 55% discount scheme in perpetuity because it was a term in a contract are on the low side.

 

[Purple]

55%... wow!

 

[Sunny]

If I were to guess.... Revenue looked at the benefit. Revenue got a call from Brendan Ogle. Revenue left........

 

[TRS30]

If I were to guess.... Revenue looked at the benefit. Revenue got a call from Brendan Ogle. Revenue left........

I would hope that Revenue would be one of the few institutions who would not be bullied by unions.

 

[TarfHead]

Just wondering do the workers of ESB who receive 25% off their ESB bills do they pay benefit in kind for this privilege.

And the rest ..

A relative of mine joined the ESB a few years ago at management level. His description of the working practices and allowances would make your hair curl.

 

[Time]

I can imagine.

I joined the ESB fresh out of school back in the 90's. Did my 4 years and left.

The stuff that went on back then would make the current lot look good.

 

[Purple]

What impact would there be on electricity prices if the average pay in the ESB was the average industrial wage and the company had no pension liability (employees paid for their own pensions)?
Labour costs are 55% of the ESB's overall costs.

 

[TarfHead]

What impact would there be on electricity prices if the average pay in the ESB was the average industrial wage and the company had no pension liability (employees paid for their own pensions)?
Labour costs are 55% of the ESB's overall costs.

The 'need' to have prices at a certain level to encourage 'competition' may be more of a factor than labour costs. Also, the Exchequer likes to have a nice juicy dividend from ESB. Lower labour costs may not have a direct effect on retail prices.

 

[Purple]

The 'need' to have prices at a certain level to encourage 'competition' may be more of a factor than labour costs. Also, the Exchequer likes to have a nice juicy dividend from ESB. Lower labour costs may not have a direct effect on retail prices.

Ok, so there'd be a bigger dividend and so less taxes on Joe Public.