Payments to Staff – 15 Tax Free Options

It is difficult for businesses to retain staff and we are often asked for ways to remunerate them in a tax efficient manner.

Detailed below are 15 various options:-

1. Working from Home

Where employees work for substantial periods outside the employer’s business premises in the course of the performance of the duties of their employment, an employer can cover certain costs on a tax free basis:

  • Equipment such as computers, printers, office furniture, telephone line and internet access provided to facilitate work in the employee’s home where personal use is incidental.
  • A contribution of up to €3.20 per day for light and heat expenses. The employee can also claim additional amounts on a vouched basis where actual costs incurred exceed this level.
  • Costs of business calls on home and personal mobile phone.

2. Sport Club Subscriptions

If the employer pays the subscription on behalf of the employee, the amount paid is declared as notional salary and the equivalent tax is deducted from the employee.  For example a golf club subscription costing €1,500 will in effect only cost the employee €750, assuming 50% income tax marginal rate applies.

These can be made tax free where membership of the club is available to all employees.

3. Non-Cash Gift – Voucher or Benefit

The limit for giving a tax free voucher to an employee is €500 per annum. These are normally provided as vouchers and are tax free to the receiver.

4. Company Car or Pool Car

If private use is excluded, then the cost to the employee can be zero.

Depending on the amount of business mileage, Read more

Posted on August 10, 2017 by Cooney Carey

Irish Transfer Pricing Rules

Ireland has to a large extent, a light touch transfer pricing regime.

Irish legislation governing transfer pricing is to be found in Sections 835A to 835H Taxes Consolidated Act 1997.

Under Irish legislation the following is excluded from transfer pricing regulation:

  1. Small and medium enterprises with staff of less than 250 and either has turnover under €50 Million or assets under €43 Million,
  2. Grand fathering arrangements put in place before 1 July 2010 and not changed since
  3. Arrangements between non-associated persons
  4. Non-trading activities

The Irish Revenue do not propose to Read more

Posted on June 14, 2017 by Cooney Carey

Foreign Income and Assets Disclosure – Deadline 30th of April

hourglass-620397_1280

As and from the 1st of May a taxpayer, both individuals and corporates, will be unable to obtain the benefits of a qualifying disclosure in respect of offshore matters.

What are offshore matters?

Offshore matters relate to any asset outside the State and would include such items as;

  • Rental income arising from property situated outside the State.
  • Income earned from a foreign bank account held outside the State.
  • Foreign income such as foreign pensions, salaries, foreign trades and foreign dividend income.

What are the benefits of making a disclosure before the 1st of May?

If a qualifying disclosure is made before Read more

Posted on April 10, 2017 by Cooney Carey

← Older Posts