Questions and Answers
Can company directors avail of the Small Benefit Scheme?
I am the director of a small company and giving my employees a voucher though the Small Benefit Scheme. Can I also avail of this scheme?
Proprietary Director
Salaried Director
Director who receives Directors’ Fees
Non-Exec Director who receives Dividend Income
Unpaid Directors
Frequently Asked Questions
Under the Small Benefit Exemption businesses can give employees up to €1,000 a year completely tax-free.
In Budget 2025 it was announced that the amount that can be given tax free under the Small Benefit Scheme will be increased to €1,500. This change is effective from 1 January 2025.
No, this benefit must be in the form of a voucher which can only be redeemed in exchange for goods and services.
Yes, as long as they are in receipt of “Schedule E” income from their company on which income tax, PRSI and USC is being deducted.
No, because sole traders do not receive Schedule E income from their businesses. Employees of sole traders can avail of the scheme, however.
The benefit must be detailed under Revenue’s Enhanced Reporting Requirements in real time i.e., on or before the date of payment.
Date published 2 Oct 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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