Tax exempt Christmas gift ideas for employees.
Did you know employer’s can give each member of staff tax exempt (including directors) non-cash voucher for any amount up to €500 p.a. It is important to note that a voucher of €501 would be liable to tax in full as a BIK. The employer is entitled to a deduction in their accounts for the cost of the voucher while the employee is not liable to Income Tax, PRSI or USC. The voucher cannot be swapped for cash or paid in exchange for a reduction in wages.
Staff discounts for purchase of goods in the business of their employer are also not liable to BIK as long as the price paid by the staff is not less than the cost of the goods to the employer.
The provision of a mobile phone, laptop, internet connection and computers to staff is not taxable as long as they are provided for business use and any private use element is only incidental.
For more tips on how to save money in business contact FHM here.