In his Budget day speech Minister Noonan provided a welcome boost for employees with the news that the limit for tax free non cash benefits paid by employers was to be increased from €250 to €500. Historically the limit was granted as a concession by Revenue, however it will now form part of the Taxes Acts.
With Christmas fast approaching there was further good news in more recent weeks when it was announced that the effective date for this change would be the date of publication of the Finance Bill, 22 October 2015. The change is being applied on an administrative basis by Revenue pending the enactment of the Finance Bill.
The relief will apply to qualifying incentives, which means either a voucher or a benefit (defined as any tangible asset other than cash) that is given to an employee by his or her employer in a year of assessment where the following conditions are satisfied:
Salary sacrifice arrangement is defined as any arrangement under which an employee foregoes the right to receive any part of his or her remuneration due under his or her terms or contract of employment and in return his or her employer agrees to provide him or her with a qualifying incentive.
A video message from Tadgh O'Sullivan, Director.
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