Small benefit from €1,000 to €1,500 for employers

[T McGibney]

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?

I wouldn't because it's strictly incorrect.

If they are in receipt of “Schedule E” income, from their company or from another employment, on which income tax, PRSI and USC is being deducted, they can avail of the scheme in respect of that employment.

In other words, their self-employment status in respect of another source of income doesn't disqualify them.

But we all knew that anyway.

 

[Savvy]

Who are people using for vouchers, I normally use One4all and I think they only charge a small postage fee.

Looked at Clevercards who charge 2%+vat on the value. So €36.90 on a single €1500 voucher.
Allgo are €6 per card.
Perx are only €1 /card - Trustpilot reviews seem to be horrendous for the card

Is that all the options? Without further digging it seems Perx are the cheapest.

Edit: Added Trustpilot info

 

[Firefly]

Who are people using for vouchers, I normally use One4all and I think they only charge a small postage fee.

Looked at Clevercards who charge 2%+vat on the value. So €36.90 on a single €1500 voucher.
Allgo are €6 per card.
Perx are only €1 /card

Is that all the options? Without further digging it seems Perx are the cheapest.

I think the easiest thing to do is buy gift cards for whichever supermarket you shop with - it's essentially 40% off your shop

 

[Savvy]

I think the easiest thing to do is buy gift cards for whichever supermarket you shop with - it's essentially 40% off your shop

yeah you are probably right. I think that's why One4all for Tesco and Supervalu have sufficed in previous years

 

[faketales]

What’s the purpose of this benefit. I understood it when it was €500. Thats would allow a company give a nice bonus without tax.

Not the kind of bonus that someone in sales has obviously but an “ordinary worker” bonus. A thank you for your hard work at Christmas type without the taxman taking a chunk before the Christmas presents are bought.

But at €1,500 it’s getting into the next tier. I suspect lots of people would push for this as part of a pay package.

But it will be pretty adhoc who gets it. I’m not sure the ordinary worker on 40k is getting a bonus of €1500 either so it suits higher earners. Although perhaps the next pay increase would be on the small benefit as opposed to salary.

 

[messyleo]

Agree with this but it is being phased out in 2030 I guess
Years ago I worked in a shop on minimum wage and we got a 100 euro one4all voucher as an xmas bonus which was a great result - can totally see it in this context, 1500 not so much

 

[Itchy]

What’s the purpose of this benefit. I understood it when it was €500. Thats would allow a company give a nice bonus without tax.

Not the kind of bonus that someone in sales has obviously but an “ordinary worker” bonus. A thank you for your hard work at Christmas type without the taxman taking a chunk before the Christmas presents are bought.

Wouldn't even give them that credit. The benefit is ludicrously conditional.

THAT EASTER EGG GIFT MAY HIDE A FUTURE TAX BILL

Employers need to be aware that ALL gifts to employees are within the scope of the Small Benefits Exemption

www.dhkn.ie

Revenue Guide - Small Benefit Exemption - a few sneaky bits

Revenue have issued a guide to the Small Benefit Exemption - must be by gift card as in not cash or able to draw cash using the card - only two can be issued in year - maximum total €1,000 - no paye/prsi/usc - sneaky bit you cannot issue a value card for say €500 AND tax it and then issue a...

www.askaboutmoney.com

 

[faketales]

Wouldn't even give them that credit. The benefit is ludicrously conditional.

THAT EASTER EGG GIFT MAY HIDE A FUTURE TAX BILL

Employers need to be aware that ALL gifts to employees are within the scope of the Small Benefits Exemption

www.dhkn.ie

Revenue Guide - Small Benefit Exemption - a few sneaky bits

Revenue have issued a guide to the Small Benefit Exemption - must be by gift card as in not cash or able to draw cash using the card - only two can be issued in year - maximum total €1,000 - no paye/prsi/usc - sneaky bit you cannot issue a value card for say €500 AND tax it and then issue a...

www.askaboutmoney.com

Yes I’ve seen that before. I think it just means that many companies will do away with small (€50) vouchers for different things they may run through the year.

While it’s easy enough to track how many €500 / €1000 vouchers are issued a €50 voucher that might be given as a price for best dressed at Halloween or something or other is an admin nightmare. And no one would want to win!

I’d like to hear the €1,500 justification and some data about who gets it.

Basically tax credits for a certain demographic.

 

[Gordon Gekko]

I appreciate that the amounts sometimes discussed here can be large, but by no stretch of the imagination is €1,500 a lot of money. Plus it’s actually the tax, €750, that’s at issue. €750 is most certainly not a lot of money.

 

[misemoi]

A lot of companies offer things like Workhuman rewards programmes where you can be nominated for a cash gift or similar internal things for going above and beyond on a project etc. That is where this limit adds value, it can make these tax free. So the dedicated employee who gets several of these gets the benefit (though they should be looking to be promoted to pay even more tax if they are that good )

 

[Fortune]

I’m not sure the ordinary worker on 40k is getting a bonus of €1500 either so it suits higher earners.

Back in my days of earning 40k, my bonus was a lot higher than €1500

 

[peemac]

Who are people using for vouchers, I normally use One4all and I think they only charge a small postage fee.

Looked at Clevercards who charge 2%+vat on the value. So €36.90 on a single €1500 voucher.
Allgo are €6 per card.
Perx are only €1 /card - Trustpilot reviews seem to be horrendous for the card

Is that all the options? Without further digging it seems Perx are the cheapest.

Edit: Added Trustpilot info

Avoid one4all - they charge small/medium retailers 12.3% net commission.

Me2you which is operated by Retail Excellence has a far larger number of retailers that accept them - and they charge a much more reasonable 3%-4%

 

[Gordon Gekko]

Avoid one4all - they charge small/medium retailers 12.3% net commission.

Me2you which is operated by Retail Excellence has a far larger number of retailers that accept them - and they charge a much more reasonable 3%-4%

Being blunt, who cares what the retailer is charged? It’s incremental business that’s often generated by the existence of the voucher.

 

[Blackrock1]

Who are people using for vouchers, I normally use One4all and I think they only charge a small postage fee.

Looked at Clevercards who charge 2%+vat on the value. So €36.90 on a single €1500 voucher.
Allgo are €6 per card.
Perx are only €1 /card - Trustpilot reviews seem to be horrendous for the card

Is that all the options? Without further digging it seems Perx are the cheapest.

Edit: Added Trustpilot info

We have used perx the last few years no issue, it's a prepaid credit card not quite sure what people would be negatively reviewing it for

 

[AndroidMan]

Being blunt, who cares what the retailer is charged? It’s incremental business that often generated by the existence of the voucher.

Agreed.. one4all is accepted by Tesco and thats my main weekly shop sorted for a good while. With or without the card, I will pay Tesco and Tesco will take my money.

 

[peemac]

Being blunt, who cares what the retailer is charged? It’s incremental business that’s often generated by the existence of the voucher.

It's the reason why the choice of stores that accept one4all has dropped substantially.

If you want the recipient to have a greater choice of places to use a voucher, you'd avoid one4all cards

 

[Corola]

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

When I get the vouchers I make a payment of €500 to my electricity bill. It's the most efficient way to use up the card and I can bin it straight away.