Under Irish Revenue’s Small Benefits Exemption Scheme, employers can reward employees with a non-cash bonus of up to €250 in value completely tax free each year. Provided certain guidelines are followed, neither the company nor the employee will pay PAYE, PRSI or USI, potentially saving €326 in tax (see table below).
To qualify for the tax exemption, only one tax-free bonus may be paid to each employee in any one year. If more than one bonus is given in a year, it is only the first one that will qualify for tax-free status, even if this bonus is less than the €250 annual allowance - any used allowance cannot be carried over. The tax-free bonus must also be paid in non-cash form.
AllGo! vouchers are fully compliant with the Small Benefits Exemption Scheme. If you wish to spread out the benefit over the year, our points incentive programme can be used to provide ongoing points, which at year end can be redeemed for a one-off bonus to comply with the tax-free scheme.
AllGo! can provide easy ways to distribute tax-freee bonus vouchers to your staff - by email, mobile or in presentation gift boxes. You will receive a full spreadsheet report on bonuses allocated for easy integration with payroll tax calculations. And our vouchers can be used online to choose from 10,000 products, services and gift cards from over 200 Irish and international reward partners. For more details, please visit our Reward Partner page.
We would be happy to advise on company bonuses and to administer your tax-free bonuses on your behalf as a turnkey solution – for more details,
please contact the AllGo! sales team