Reward. Motivate. Save Tax.

Small Business Exemption Scheme

Under Irish Revenue’s Small Benefits Exemption Scheme since 22 October 2015, employers can now reward employees with a non-cash bonus of up to €500 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 €653.65 in tax. 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 rules as set out by the Revenue Commissioners below are followed.

Business owners and directors can also benefit from the scheme.

Paul O'Donovan, Paul O'Donovan and Associates, Accountants , CorkPaul O’Donovan

Founding Partner, Paul O’Donovan & Associates, Auditors and Accountants, Cork