“The Finance Bill announced that employers will be able to gift vouchers of up to €500, tax free and today (Friday) it was confirmed that this measure has come into effect and will apply to all vouchers purchased since 22nd October”, says Fine Gael TD for Dublin Fingal, Alan Farrell.
“It is welcome news that the Minister for Finance, Michael Noonan has fast tracked these new measures and backdated them from 22nd October to allow employers to give bonus vouchers of up to €500 to employees, tax free.
“The fast tracking of this measure, to increase the value of non-cash bonuses or benefits which staff can receive from their employers without paying tax, will provide a great boost to local businesses in the North County.
“It is positive news that the change will take effect before Christmas so employees can now benefit from this in their Christmas bonus this year.
“Up until now, an employer could provide an employee with a once-off, annual non-cash benefit to the value of €250 that was not liable for tax. The new provisions, contained in the Finance Bill, mean the maximum value of such a benefit has now been increased to €500. Anything above that will still be subject to PAYE and PRSI.
“This is a great incentive for employers to reward staff with a larger bonus for Christmas and it will provide a significant boost to the local economy, where people will spend the vouchers.
“Don’t forget to shop local this Christmas, and support small businesses in our community.”