Other employee benefits worthy of note

There are a number of other common benefits which can be offered free of tax to employees which employers should always bear in mind:

  • You can provide a benefit by way of a voucher up to the value of €500 in any tax year. The benefit must be by way of a voucher which is not redeemable as cash and must not form any part of an agreement to forego salary in lieu of the voucher (i.e. salary sacrifice). You can only offer one such voucher in any tax year. Employers could use such vouchers to incentivise staff in terms of recognition awards or indeed a voucher ahead of the Christmas period.
  • It is possible to fund the cost of educational courses or exams fees for your employees without any taxable benefit arising, where the courses contribute to the employees’ knowledge and performance within their role. This will contribute to your employee’s personal and professional development, as well as supporting your business through the benefits of upskilled and qualified labour force. In addition, the payment of an employees’ professional subscription can be made subject to certain conditions.
  • Payments to a pension scheme for employees can be made without any taxable benefit arising and other benefits like a Monthly Travel Pass, Provision of Bicycles for travelling to work, or the provision of Work related equipment or expenses for the home office, are always popular benefits carrying reduced taxes if certain conditions are satisfied.

Return to: Tax Issue - Summer 2018

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Mairead O'Grady

Taxation Partner

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