Employers can give employees and directors on payroll a small benefit (often given as gift vouchers) of €500 per year. Along with saving the employee up to 52% income tax this can also avoid the company having to pay up to 10.75% employers PRSI so a significant saving.
There is no returns or filings to be made to avail of this scheme, the employer is simply invoiced for the benefit and the employees or directors receive it.
The rules are relatively simple
- The voucher cannot be redeemable for cash
- Only one small benefit per year
- A salary sacrifice for the benefit is not allowed