Brendan Burgess
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5 tax-free awards.
Small benefit from €1,000 to €1,500 for employers
- Thread starter Brendan Burgess
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flyingfolly
Registered User
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I can't find information on this, can you explain more?
These are measures that are just being announced in the budget today, details will follow.
T McGibney
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The country will literally be swimming in vouchers.
And as usual, nothing for the self-employed.
It would be far more honest, cheaper and simpler to raise the PAYE and earned income credits by an appropriate sum.
And as usual, nothing for the self-employed.
It would be far more honest, cheaper and simpler to raise the PAYE and earned income credits by an appropriate sum.
That was my first thought. In effect it’s just an increase in the tax free allowance for people employed by employers who are bothered to facilitate it.
Additional expense for employers too. Vast majority of people get these at Christmas as a single voucher.
Whilst it is never a requirement to give these vouchers, employees who have previously received the max of €1,000 they will now be expecting €1,500.
10 years ago, when the likes of One4All had a monopoly on this market it did ensure that the cards were spent in Irish based shops, restaurants and hotels which put money back into these businesses as they were only accepted in certain shops/companies. This has changed thankfully, as One4All are a terrible company for both users and businesses.
Nowadays the market is flooded with, primarily international alternatives, that are essentially preloaded master cards that can be used anywhere that accepts card payments. Some places I heard our employees used their cards in the last year;
Gambling sites/shops
International Airlines
Petrol Stations
Phone/Gas/Electric Bills
GP visits
To me, it's great that people have an extra few quid in their pockets that they can use how they wish but we have moved away from the initial intention of the allowance. The allowance should be reduced back to €500 and the balance should be made up through an increase in tax credits.
.. and is it being removed altogether from 2030 onwards ? Why increase it then abolish it. 
"Small Benefit Exemption From 1 January 2025 the number of annual vouchers or benefits is increasing from the first two to the first five and the exemption limit is increasing from €1,000 to €1,500. The exemption will cease to apply for tax year 2030 and subsequent years."
"Small Benefit Exemption From 1 January 2025 the number of annual vouchers or benefits is increasing from the first two to the first five and the exemption limit is increasing from €1,000 to €1,500. The exemption will cease to apply for tax year 2030 and subsequent years."
For some of us, it's just allowing our employer to pay our professional subs without us being taxed for it
Dr Strangelove
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Nor public sector workers either where vouchers are almost never awarded.
Exactly. Very divisive. Basically a tax free allowance for some at the discretion of your employer. And in general the state as an employer won’t be facilitating.
I understand, those who are self-employed, who are directors/employees of their own company, can award these vouchers to themselves?
flyingfolly
Registered User
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Yes correct
Dr Strangelove
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Can a self-employed carpenter with no staff award herself a €1,500 voucher as a cost of sales? I don’t think so.
If she is an employee / paid director in her own company, my unterstanding is she can award herself the small benefit
Not revenue but from allgo.ie
Q. Can self-employed workers avail of the Scheme?
A. Yes, as long as they are in receipt of “Schedule E” income from their company on which income tax, PRSI and USC is being deducted. As there is no employer PRSI for self-employed workers, the overall tax-saving may be 11.05% less than for employed workers.
Q. Can Sole Traders avail of the Small Benefit Scheme?
A. No, because Sole Traders do not receive Schedule E income from their businesses. Employees of Sole Traders can avail of the Scheme however.
Q. Can self-employed workers avail of the Scheme?
A. Yes, as long as they are in receipt of “Schedule E” income from their company on which income tax, PRSI and USC is being deducted. As there is no employer PRSI for self-employed workers, the overall tax-saving may be 11.05% less than for employed workers.
Q. Can Sole Traders avail of the Small Benefit Scheme?
A. No, because Sole Traders do not receive Schedule E income from their businesses. Employees of Sole Traders can avail of the Scheme however.
T McGibney
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There's an oxymoron in there.
I meant directors who are paid employees - as per Savvy's reference :
Q. Can self-employed workers avail of the Scheme?
A. Yes, as long as they are in receipt of “Schedule E” income from their company on which income tax, PRSI and USC is being deducted
Would you agree with this?