Budget 2016 allows employers to gift bonus vouchers of up to €500, tax free – Fitzpatrick

“Changes to the small benefit tax measures announced in the Finance Bill mean that employers will now be able to award non-cash bonuses of up to €500 to staff, tax free. This is good news for employers and for staff”, says Fine Gael TD for Louth, Peter Fitzpatrick.

“Staff will be able to receive non-cash bonuses or benefits from their employers up to the value of €500 without paying tax under new measures to be introduced as part of Budget 2016.

“At present an employer can award a non–cash bonus of up to €250 without being liable to pay tax. Anything above that is subject to PAYE and PRSI. From January this figure will double to €500.

“I very much welcome this change introduced by the Minister for Finance, Michael Noonan. This will be a great incentive for employers to reward staff with a larger bonus and it will provide a significant boost to the local economy where people will spend the vouchers.

“The changes to the small benefit tax measures will unfortunately not come into effect on time for Christmas, but will be implemented in January. Perhaps there is an argument to be made for holding off on the bonuses on time for the January sales?”