Given the existing high tax environment with some employees facing a marginal tax rate up to 52%, it is important that whenever possible advantage is taken of tax free remuneration.....

As the year draws to a close I wanted to remind you of a small tax efficient benefit that is available to company directors and employees once a year.

Recent tax legislation contained in Section 112B Taxes Consolidation Act 1997  has codified Revenue Practice of not taxing one voucher provided to an employee (includes Company Directors) by their employer to a maximum value of €500 per annum. No Income tax, PRSI or USC applies.
 
The main conditions are that only one voucher a year can be provided to an employee up to a maximum of €500, and the voucher;
 
·        Does not form part of a salary sacrifice arrangement
·        Can only be used to purchase goods or services (ie it cannot be converted to cash)
·        The voucher or benefit cannot exceed €500 in value 

 It does not have to be a voucher, ..it can include a benefit provided by the employer to the employee, perhaps home insurance, gym membership or similar paid for? 
 
Please feel free to pass this mail onto anyone who you think may be interested / affected. Any questions, don't hesitate to contact me.

Regards,

 

Gavin Gilmore QFA, FLIA, CFP, CTA.