Taxation on Benefits from Employment

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As you probably know, most Benefits in Kind (e.g. company car, free or subsidised accommodation and preferential loans) received from your employer are taxable.

Benefits which your employer provides for any member of your family or household are also taxable.

You are also chargeable to tax with respect of perquisites from your employer (remuneration in non-monetary form) e.g. shopping vouchers, club subscriptions and medical insurance payments.

However there are some items requiring clarification!

• Small Benefits – If less than €250 in one year these are not taxable
• Canteen Meals – Free or subsidised meals are not taxable if available to all staff
• Meal Vouchers – The face value of the voucher is taxable
• Crèche/ Childcare facilities – Free or subsidised childcare facilities are taxable
• Sports/ Recreational Facilities – If available on employer’s premises for use by all employees these are not taxable
• Staff Discounts - if sum paid is equal or greater to the cost to the employer these are not taxable
• Christmas Parties/ Meals – If the cost to employer is reasonable parties and meals are not taxable
• Laptop/ Mobile Phone – If private use is incidental then these are not taxable
• Staff Suggestion Schemes – Awards are taxable

Brian Dignam is Director in OSK. Contact OSK for all your tax and accounting services on 01 439 4200.

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• Benefit In Kind (BIK)