Reward. Motivate. Save Tax.

Under Irish Revenue’s Small Benefits Scheme, employers can now reward employees with a non-cash bonus of up to €1000 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 €1,314 per employee in tax.

To qualify for the tax exemption, only two tax-free bonus may be paid to each employee in any one year up to a combined value of €1,000. If more than two bonuses are given in a year, it is only the first two that will qualify for tax-free status. The tax-free bonus must be paid in non-cash form.

There is no paperwork and no return to be made to avail of the scheme. Companies (or sole traders) are simply invoiced for the total value of tax-free vouchers ordered. The invoice is treated as a normal business expenses for accountancy purposes, and there is no need to adjust payroll in any way – provided the above rules are followed. Business owners and director can also benefit from the scheme.

4 Steps to Tax-Free Staff Rewards


You can reward up to €500 in non-cash rewards per employee, so it’s up to you to set the actual amount.

Ask Why

You can simply give a tax-free reward as a way of thanks, or you can put a programme in place for employees to earn their rewards


You can order any type of voucher (or non-cash gift), though most employees prefer multi-retailer vouchers like


The reward invoice is put through the company accounts as an expense, and doesn’t affect payroll in any way.

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