Accountants, Taxation & Business Advisors

Would you like a tax free sports car?

 

Finance Bill 2017 introduced a new tax relief for the provision of electric vehicles to employees. With effect from 1st January 2018, for a period of at least one year, an employee (including directors) can be provided with an electric car without being subject to benefit in kind (BIK). Furthermore the company can even provide electric charging points for employees and directors without any tax. So if you were thinking of getting an environmentally friendly Tesla or BMWi3 then buying it through you company could be the way to go.  

Other Tax Efficient Benefits

Electric cars are not the only tax efficient remuneration options for employers. A few other notable examples include:

  • KEEP Share Options - From 1 January 2018, SMEs in Ireland will be able to grant KEEP (Key Employee Engagement Programme) or "qualifying" share options. The options can be exercised without incurring an income tax liability and provide a way to incentivise and retain key staff.
  • €500 “Small Benefit” – Usually taking the form of a voucher, employees can be provided with a once off tax free benefit worth up to €500 each year. The benefit can’t be in cash.
  • Travel Passes – Monthly or annual travel passes provided to employees should not be treated as benefit in kind.
  • Bike to Work – A new bike and safety equipment can be provided to an employee up to a maximum value of €1,000 without incurring a charge to benefit in kind.
  • Long Service Awards – Have an employee who’s been with the firm for over 20 years? They can be given an award (not in cash or vouchers) worth €50 for each year of service, subject to certain conditions.

 

These are some of the most basic employee rewards available, but there are many ways to incentivise and reward staff members that are integral to your business.

Contact HLB Sheehan Quinn today for more information and help on retaining your key staff in a competitive market place.

 

 

 

This article is for general information purposes only and does not constitute legal, tax, accounting or other professional advice. Specific professional advice should be sought on any particular matter.

Any and all information is subject to change without notice. No liability whatsoever is accepted by HLB Sheehan Quinn for any action taken in reliance on the information in this article.

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