The Small Benefit Exemption
There Is An Easy and Tax Free Way To Reward Employees This Christmas
This year has been difficult for many businesses and their staff. There is an easy and tax-free way for businesses to reward their employees this Christmas.
Irish Revenue’s Small Benefit Scheme allows employers to reward their employees with a non-cash bonus of up to €500 in value, tax free each year. 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 each year, only the first bonus will qualify for the tax-free status, even if the bonus is less than the €500 annual allowance.
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.
The Small Benefit Exemption Scheme is a nice way for businesses to reward staff in the run up to Christmas.
For more information visit Revenue.ie