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

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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...
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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.
 

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.
 
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.
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Is that two vouchers of €1,000 or two vouchers to a total of €1,000?
 
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 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?
 
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.
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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?
 
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
 
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?
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Yes. In a previous life I used to get €500 Dunnes Stores vouchers.
 
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
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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?
 
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?
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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.
 
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)
 
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
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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...
 
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...
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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.
 
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...
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a perx is a prepaid credit card, we gave them out for years, what was confusing about them?
 
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)
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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.
 
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.
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Also Woodies, B&Q, handy for househouse stuff and even a gas cylinder refill
 
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